1 00:00:00,000 --> 00:00:04,140 Sid: Me as the leader, I've gotta identify what are the areas that are 2 00:00:04,140 --> 00:00:07,980 gonna make the biggest differences, and how do I keep people focused on that? 3 00:00:08,400 --> 00:00:12,120 Then also, how do I line them up with what's in it for them, the 4 00:00:12,120 --> 00:00:14,040 company, and all of our futures. 5 00:00:20,730 --> 00:00:24,690 Welcome everyone to another episode of the Overlap podcast where we dive into 6 00:00:24,690 --> 00:00:29,580 the intersections of work, fitness, family, faith, parenting, and leadership. 7 00:00:30,210 --> 00:00:33,180 And here we believe that growth in one area of your life fuels 8 00:00:33,180 --> 00:00:34,769 growth in all areas of your life. 9 00:00:35,220 --> 00:00:37,680 And that's why we're committed to taking the lessons we've learned 10 00:00:37,680 --> 00:00:41,430 from business, breaking them down into simple, actionable insights and 11 00:00:41,430 --> 00:00:43,410 empowering small business leaders And. 12 00:00:43,520 --> 00:00:45,830 You know, everyone else to thrive. 13 00:00:46,670 --> 00:00:50,060 Um, that's really our mission here. 14 00:00:50,060 --> 00:00:53,720 So, uh, we appreciate you guys listening and, uh, thanks for tuning 15 00:00:53,720 --> 00:00:57,890 in today or tonight or whatever the time is, whenever you are listening. 16 00:00:57,920 --> 00:00:59,780 And, uh, here we go. 17 00:00:59,840 --> 00:01:00,560 How you been, Keith? 18 00:01:00,620 --> 00:01:01,310 Very good. 19 00:01:01,310 --> 00:01:02,540 How are you man? 20 00:01:02,660 --> 00:01:03,380 I'm doing great. 21 00:01:03,380 --> 00:01:05,660 Been, uh, been super busy lately. 22 00:01:05,660 --> 00:01:06,500 I know you have too. 23 00:01:06,560 --> 00:01:10,580 So, uh, before I get into me, what, what have you been up to? 24 00:01:11,210 --> 00:01:15,119 Speaker 2: Oh man, we've been, um, I. I'm doing a lot with family 25 00:01:16,440 --> 00:01:19,830 and, uh, hatch had a big event, event last night with, uh, yeah. 26 00:01:20,125 --> 00:01:20,970 Let, let's start with family. 27 00:01:20,970 --> 00:01:21,390 Hold on. 28 00:01:21,390 --> 00:01:21,570 Let's 29 00:01:21,570 --> 00:01:22,259 Sid: go back to family. 30 00:01:22,259 --> 00:01:22,320 Yeah. 31 00:01:22,350 --> 00:01:23,550 What, what, what are you doing there? 32 00:01:23,910 --> 00:01:24,630 Parents? 33 00:01:25,500 --> 00:01:26,429 Oh, yes. 34 00:01:26,429 --> 00:01:28,261 So you've had a lot going on. 35 00:01:28,261 --> 00:01:28,265 I had lot going 36 00:01:28,270 --> 00:01:32,130 Speaker 2: on with parents and I was telling someone just 37 00:01:32,340 --> 00:01:34,080 last week I was, I was like. 38 00:01:34,664 --> 00:01:37,845 You know, and I you've been through this as well. 39 00:01:37,845 --> 00:01:37,905 Yeah. 40 00:01:38,414 --> 00:01:40,215 Uh, parents aging is a hard thing. 41 00:01:41,475 --> 00:01:42,075 Sid: Yeah, man. 42 00:01:42,164 --> 00:01:49,905 And then, uh, I sort of always remember my dad at like 45 to 50 and, uh, yeah. 43 00:01:50,085 --> 00:01:51,945 It just, yeah, it didn't stay that way. 44 00:01:52,155 --> 00:01:52,455 Speaker 2: Yeah. 45 00:01:52,875 --> 00:01:53,145 Yeah. 46 00:01:53,145 --> 00:01:54,615 But it's part of life, isn't it? 47 00:01:54,675 --> 00:01:55,245 It is. 48 00:01:55,664 --> 00:01:58,455 It's, and so, uh, so you've, but you've been able to be there for him, been 49 00:01:58,455 --> 00:02:01,245 able to be there, um, did get to. 50 00:02:02,310 --> 00:02:03,330 We traveled a bit. 51 00:02:03,600 --> 00:02:03,929 Yep. 52 00:02:04,080 --> 00:02:08,729 And so that was cool, getting to get out and ski and then, uh, 53 00:02:09,000 --> 00:02:11,579 last week got back and back at it. 54 00:02:12,060 --> 00:02:12,359 Sid: Yeah. 55 00:02:12,420 --> 00:02:17,100 So you said, you were saying before I cut you off that hatch had, uh, a big event. 56 00:02:17,130 --> 00:02:18,030 Tell, tell me about that. 57 00:02:18,030 --> 00:02:18,209 Yeah, 58 00:02:18,720 --> 00:02:19,109 Speaker 2: we did. 59 00:02:19,109 --> 00:02:23,220 Um, we did a biotech event, which sounds way smart for me to be involved. 60 00:02:23,370 --> 00:02:24,209 It does, admittedly. 61 00:02:24,209 --> 00:02:28,230 Uh, I was sitting in a room last night with scientists and doctors and. 62 00:02:30,030 --> 00:02:32,520 Academia thinking, why am I here? 63 00:02:32,730 --> 00:02:33,060 Sid: Yeah. 64 00:02:33,240 --> 00:02:36,060 Speaker 2: But, um, really great event. 65 00:02:36,120 --> 00:02:42,840 Bringing the biotech and, and marine sciences and ag sciences and 66 00:02:42,840 --> 00:02:46,710 all of those folks together, uh, under one roof was kind of cool. 67 00:02:46,710 --> 00:02:51,480 We led a panel and trying to see how we facilitate 68 00:02:53,760 --> 00:02:57,420 a program that benefits them so. 69 00:02:57,680 --> 00:02:57,970 Okay. 70 00:02:57,975 --> 00:02:58,785 That's kind of cool. 71 00:02:58,785 --> 00:03:00,765 So benefits the scientists does. 72 00:03:00,825 --> 00:03:01,035 Yeah. 73 00:03:01,065 --> 00:03:01,185 Okay. 74 00:03:01,190 --> 00:03:06,165 Or, or involves them in creating techno technology out of Ballwin County. 75 00:03:06,165 --> 00:03:08,925 So, you know, that's a pretty cool thing too. 76 00:03:09,345 --> 00:03:09,646 Cool, cool. 77 00:03:10,095 --> 00:03:15,165 And then, uh, about to launch a book with the publishing company 78 00:03:15,165 --> 00:03:17,385 and so all that good stuff, man. 79 00:03:17,955 --> 00:03:19,185 Spring has sprung it. 80 00:03:19,185 --> 00:03:19,995 Spring has sprung. 81 00:03:20,355 --> 00:03:20,715 Yeah. 82 00:03:21,315 --> 00:03:26,115 And, um, so just been, and I hate the term busy. 83 00:03:26,715 --> 00:03:27,015 Yeah. 84 00:03:27,704 --> 00:03:30,915 Because busy a lot of times means not effective. 85 00:03:31,424 --> 00:03:31,454 Oh, 86 00:03:31,454 --> 00:03:31,845 Sid: okay. 87 00:03:32,084 --> 00:03:35,475 Speaker 2: And so I, that's what I'm trying to get better at is, is this 88 00:03:35,475 --> 00:03:38,595 effective, busy or is it just being busy? 89 00:03:39,015 --> 00:03:39,405 Okay. 90 00:03:39,495 --> 00:03:42,554 Because I think we've talked about this before, we have 91 00:03:43,394 --> 00:03:44,804 really easy to just be busy. 92 00:03:46,005 --> 00:03:46,454 Sid: Mm-hmm. 93 00:03:46,545 --> 00:03:47,415 And not productive. 94 00:03:47,595 --> 00:03:47,804 Speaker 2: Yeah. 95 00:03:47,804 --> 00:03:48,105 Right. 96 00:03:48,105 --> 00:03:48,435 Sid: Yeah. 97 00:03:48,945 --> 00:03:49,454 How about you? 98 00:03:50,460 --> 00:03:53,370 So, uh, yeah, we, we, we had some time off. 99 00:03:53,370 --> 00:03:58,200 Keith and I, uh, went with, um, three other guys that were, that were in a 100 00:03:58,200 --> 00:04:01,920 peer group of mine for over 17 years. 101 00:04:02,490 --> 00:04:05,610 Um, we went skiing and, and, and caught up with them. 102 00:04:06,600 --> 00:04:07,620 Keith got to, uh. 103 00:04:08,640 --> 00:04:12,119 Kind of, kind of meet those guys that, that really I grew up with 104 00:04:12,119 --> 00:04:14,040 in business and learned a lot from. 105 00:04:14,130 --> 00:04:16,589 And, uh, and we, we did some skiing. 106 00:04:16,589 --> 00:04:17,969 The weather was okay. 107 00:04:18,120 --> 00:04:20,279 Uh, snow was just okay. 108 00:04:20,669 --> 00:04:22,200 But the company was pretty great. 109 00:04:22,650 --> 00:04:25,050 Um, and we got to spend some time there. 110 00:04:25,050 --> 00:04:27,539 And then Saturday, everyone left and I picked up the, 111 00:04:27,539 --> 00:04:29,669 uh, picked up wife and kids. 112 00:04:30,330 --> 00:04:36,300 On, uh, after spending about three hours at a, uh, Gold's Gym in Montrose, 113 00:04:36,300 --> 00:04:38,580 Colorado, it was a strange experience. 114 00:04:38,580 --> 00:04:39,795 I love the pictures from the Gold Gym. 115 00:04:40,020 --> 00:04:42,360 I was there just going, what is going on? 116 00:04:42,360 --> 00:04:43,680 Did you flex in the mirror? 117 00:04:43,680 --> 00:04:44,430 I did not. 118 00:04:44,850 --> 00:04:46,410 And I didn't grunt or anything. 119 00:04:46,410 --> 00:04:48,060 You didn't, because I don't know that that's allowed. 120 00:04:48,060 --> 00:04:52,560 Maybe that's only Planet Fitness, but it was, it was just a different experience. 121 00:04:52,560 --> 00:04:54,990 I don't know that I've ever been to one of those kind of gyms. 122 00:04:55,170 --> 00:04:56,160 You know what really? 123 00:04:57,630 --> 00:05:00,210 Speaker 2: It didn't take me by surprise, but this is kind 124 00:05:00,210 --> 00:05:01,590 of a plug for a peer group. 125 00:05:01,740 --> 00:05:06,270 But seeing you guys and how your businesses have grown over the 126 00:05:06,270 --> 00:05:10,800 years and how the relationship has formed between you, between all 127 00:05:10,800 --> 00:05:12,840 of you was really great to see. 128 00:05:12,840 --> 00:05:15,780 Yeah, and it's a plug for just being in community. 129 00:05:16,140 --> 00:05:18,420 Sid: Being in community is for sure. 130 00:05:19,605 --> 00:05:24,945 And, and, and, and within that community there's, you know, cliques 131 00:05:24,945 --> 00:05:27,795 is probably, uh, one word for it, but. 132 00:05:28,305 --> 00:05:32,865 But just cohorts is probably a better word, where we were all 133 00:05:32,865 --> 00:05:36,765 about the same age and all of our businesses were about the same age. 134 00:05:37,034 --> 00:05:39,465 And so we really just kind of grew up together. 135 00:05:39,735 --> 00:05:45,044 Um, uh, and that guy Clint, who's been on the podcast, Clint Allison, him and 136 00:05:45,044 --> 00:05:48,705 I started the same, uh, the same year. 137 00:05:49,335 --> 00:05:51,945 Uh, and those other two guys started just two years before us. 138 00:05:51,945 --> 00:05:52,875 So, um. 139 00:05:52,890 --> 00:05:57,000 It was great and, and we really did spend a lot of time together seeing 140 00:05:57,000 --> 00:06:00,270 each other's businesses quite a few times and uh, and talked to each 141 00:06:00,270 --> 00:06:02,340 other a lot over the last 20 years. 142 00:06:03,330 --> 00:06:03,419 And 143 00:06:03,810 --> 00:06:06,870 Speaker 2: the topic that we're talking about today, actually, y'all talked 144 00:06:06,870 --> 00:06:08,969 about quite a bit, is how to incentivize 145 00:06:09,180 --> 00:06:09,510 Sid: Yeah. 146 00:06:09,945 --> 00:06:10,395 Speaker 2: Yeah. 147 00:06:10,395 --> 00:06:12,914 How, how do you incentivize team members? 148 00:06:13,034 --> 00:06:13,395 Right. 149 00:06:13,424 --> 00:06:17,955 And what is fair and what's not, and what's expected, and what's 150 00:06:17,955 --> 00:06:19,965 mandatory and what's extra. 151 00:06:20,085 --> 00:06:20,385 Sid: Yeah. 152 00:06:20,775 --> 00:06:21,164 Speaker 2: You know? 153 00:06:21,465 --> 00:06:21,765 Sid: Yeah. 154 00:06:21,885 --> 00:06:27,525 And, uh, the, the nice thing about a, uh, a peer group or a, you know, 155 00:06:27,525 --> 00:06:33,044 community in general is that you really don't have to go at it alone. 156 00:06:33,044 --> 00:06:35,174 You've got someone that you can, um. 157 00:06:35,760 --> 00:06:38,820 Especially once you've developed some good relationships over the period of 158 00:06:38,820 --> 00:06:42,330 years, you've got some people that you can talk to that know your business, 159 00:06:42,330 --> 00:06:47,310 know your people, know your tendencies, strengths and weaknesses, and they can 160 00:06:47,310 --> 00:06:51,330 give you some real good advice and, and, and, and it takes time to get that. 161 00:06:52,265 --> 00:06:53,044 Uh, so 162 00:06:53,344 --> 00:06:56,525 Speaker 2: yeah, and I really enjoyed it also because it was an immense 163 00:06:56,525 --> 00:06:58,655 amount of knowledge about bourbon. 164 00:06:58,835 --> 00:07:01,265 It does guys really know a lot. 165 00:07:01,265 --> 00:07:01,685 Yeah. 166 00:07:01,685 --> 00:07:02,400 So they're really into it. 167 00:07:02,400 --> 00:07:03,065 And so we had a good 168 00:07:03,065 --> 00:07:05,104 Sid: time, uh, testing that out. 169 00:07:05,135 --> 00:07:05,435 Yeah. 170 00:07:05,435 --> 00:07:08,735 They did not like Keith Mescal because it's, I didn't know 171 00:07:08,735 --> 00:07:11,015 this, but mescal is smokey. 172 00:07:11,284 --> 00:07:11,794 Not all, all 173 00:07:11,794 --> 00:07:14,555 Speaker 2: mescal, but the mescal that I like it is Okay. 174 00:07:14,555 --> 00:07:18,544 I like a pd, like if I'm gonna drink a scotch, I like a PD scotch. 175 00:07:18,635 --> 00:07:18,935 Sid: If 176 00:07:19,025 --> 00:07:19,085 Speaker 2: I 177 00:07:19,085 --> 00:07:19,594 Sid: don't even know what 178 00:07:19,594 --> 00:07:20,315 Speaker 2: PD means mean. 179 00:07:21,090 --> 00:07:23,535 Burnt, burnt, uh, or smokey flavor. 180 00:07:23,540 --> 00:07:24,455 The barrels are burnt. 181 00:07:24,455 --> 00:07:27,240 The smokey, the smokey flavor on the inside the 182 00:07:27,240 --> 00:07:27,900 Sid: barrel is burnt. 183 00:07:27,900 --> 00:07:31,590 Speaker 2: Well in, in mezcal, in, in the difference between 184 00:07:31,590 --> 00:07:34,680 mezcal and tequila is tequila. 185 00:07:35,130 --> 00:07:36,750 The agave is steamed. 186 00:07:36,990 --> 00:07:37,200 Mm-hmm. 187 00:07:38,670 --> 00:07:42,540 And mescal, the agave is roasted under the ground. 188 00:07:42,660 --> 00:07:43,380 Oh. 189 00:07:43,470 --> 00:07:46,590 And so they build a fire under the ground, Uhhuh put the agave 190 00:07:46,920 --> 00:07:48,750 in, and then extract that. 191 00:07:49,215 --> 00:07:50,085 Sid: How do they get out from there? 192 00:07:50,085 --> 00:07:52,485 How do they get the alcohol out of it or the liquid? 193 00:07:52,485 --> 00:07:53,265 The sugars? 194 00:07:53,505 --> 00:07:56,950 Uh, I'm not real sure about that, but I steam Makes sense. 195 00:07:56,950 --> 00:07:57,705 But that's a different, yeah. 196 00:07:57,705 --> 00:08:03,435 So, huh, well, there was all kinds of talk like that in the, uh. 197 00:08:04,455 --> 00:08:07,215 The, uh, in our, uh, our little meetup 198 00:08:07,275 --> 00:08:10,005 Speaker 2: and, uh, well, and I think that's important too about a peer group 199 00:08:10,005 --> 00:08:14,775 is like, not, not, not only did you, do, you only talk about business and 200 00:08:14,775 --> 00:08:19,035 what your business is doing, but you like delve in personal too, so Yeah. 201 00:08:19,035 --> 00:08:20,625 We know each other's kids, man. 202 00:08:20,715 --> 00:08:20,805 Sid: Yeah. 203 00:08:20,805 --> 00:08:21,885 Our kids know each other. 204 00:08:21,975 --> 00:08:22,245 Yeah. 205 00:08:22,275 --> 00:08:22,425 Yeah. 206 00:08:22,425 --> 00:08:23,715 Which is, that's super cool. 207 00:08:23,985 --> 00:08:24,975 My kids love Clint. 208 00:08:25,425 --> 00:08:26,655 They hated, they missed him. 209 00:08:26,835 --> 00:08:27,675 Speaker 2: Well, who wouldn't love? 210 00:08:27,885 --> 00:08:28,185 I know. 211 00:08:28,185 --> 00:08:29,400 He's freaking hilarious. 212 00:08:29,470 --> 00:08:30,015 He's hilarious. 213 00:08:30,015 --> 00:08:30,285 He's 214 00:08:30,285 --> 00:08:30,855 Sid: hilarious. 215 00:08:30,885 --> 00:08:31,095 Yeah. 216 00:08:31,845 --> 00:08:35,595 Speaker 2: Um, I meant the dude, the dude wore blue jeans under his ski pants. 217 00:08:35,595 --> 00:08:35,715 I know. 218 00:08:35,715 --> 00:08:36,400 So he could just. 219 00:08:37,080 --> 00:08:38,460 He just wore his Tennessee hat. 220 00:08:38,669 --> 00:08:39,330 That's right. 221 00:08:39,600 --> 00:08:40,049 Skiing and no 222 00:08:40,049 --> 00:08:40,590 Sid: goggles. 223 00:08:40,650 --> 00:08:40,950 Oh no. 224 00:08:40,950 --> 00:08:41,939 He wore a Flora Bama hat. 225 00:08:41,939 --> 00:08:42,059 Yeah. 226 00:08:42,090 --> 00:08:43,319 Speaker 2: Not a, not a goggle. 227 00:08:43,409 --> 00:08:44,069 Not a goggle. 228 00:08:44,159 --> 00:08:44,280 Yeah. 229 00:08:44,310 --> 00:08:45,569 Just as coast of Del Mars. 230 00:08:47,790 --> 00:08:48,930 Sid: Oh my God. 231 00:08:48,935 --> 00:08:49,225 Yeah. 232 00:08:49,230 --> 00:08:49,500 Yeah. 233 00:08:49,500 --> 00:08:49,770 It was 234 00:08:49,770 --> 00:08:50,220 Speaker 2: awesome. 235 00:08:50,340 --> 00:08:50,640 Sid: Yeah. 236 00:08:51,390 --> 00:08:56,730 So, uh, like Keith said, we're talking today, uh, about when, I 237 00:08:56,730 --> 00:09:01,680 mean really why then, when, and how to implement an incentive program. 238 00:09:02,610 --> 00:09:04,825 Um, this is an area. 239 00:09:05,464 --> 00:09:11,194 Or a topic that gets, I think most people think they, they know the answer to. 240 00:09:11,194 --> 00:09:12,755 It's almost like communication. 241 00:09:13,714 --> 00:09:15,844 Everyone goes, oh yeah, incentive. 242 00:09:15,905 --> 00:09:17,045 Yeah, just incentivize 'em. 243 00:09:17,285 --> 00:09:24,574 And it sounds smart and it sounds, um, like the right thing to do, but isn't 244 00:09:24,935 --> 00:09:28,505 and when is very important in my opinion. 245 00:09:28,625 --> 00:09:33,635 And then, um, you know, why and how. 246 00:09:34,470 --> 00:09:41,040 Those questions are just so more, so much more important than people just 247 00:09:41,069 --> 00:09:46,080 realize and, and I think most people have a flippant kind of attitude 248 00:09:46,290 --> 00:09:50,130 towards developing an incentive program until you actually sit 249 00:09:50,130 --> 00:09:51,449 down and try to come up with one. 250 00:09:51,449 --> 00:09:51,480 I. 251 00:09:52,110 --> 00:09:52,440 Speaker 2: Yeah. 252 00:09:53,370 --> 00:09:54,960 Sid: So, um, 253 00:09:55,260 --> 00:09:56,190 Speaker 2: let me ask you a question. 254 00:09:56,220 --> 00:09:56,490 Okay. 255 00:09:57,210 --> 00:10:01,800 Because I think we need to clarify this before we move into incentive 256 00:10:01,800 --> 00:10:05,040 plans, what they do and how they do it and all that stuff. 257 00:10:05,820 --> 00:10:08,610 When in your company did you decide, 258 00:10:11,010 --> 00:10:18,150 and it can be like a team member number or that you need to incorporate incentives. 259 00:10:19,560 --> 00:10:19,920 Sid: Okay. 260 00:10:20,160 --> 00:10:20,790 Um. 261 00:10:21,150 --> 00:10:25,530 You know, when we were talking about that peer group, um, after I had gotten 262 00:10:25,530 --> 00:10:31,500 in for a couple of years, uh, I had started to iron out some processes. 263 00:10:32,355 --> 00:10:36,735 You know, and then some ways this is the way we do things. 264 00:10:37,155 --> 00:10:43,395 Uh, for the first couple of years it was just me doing it and sort of, you 265 00:10:43,395 --> 00:10:46,814 know, coming out of school you've got an idea of how you're gonna do things. 266 00:10:46,814 --> 00:10:49,845 And I had some other experiences like, uh, you know, being in the Coast Guard 267 00:10:49,845 --> 00:10:51,645 and I had some, some ideas about that. 268 00:10:51,645 --> 00:10:53,204 And I had worked for other landscape. 269 00:10:53,260 --> 00:10:55,210 Companies, and I had some ideas about that. 270 00:10:55,210 --> 00:10:59,080 And, you know, uh, anyone that's ever started a business thinks they're gonna 271 00:10:59,080 --> 00:11:02,260 do it their way and, and maybe use some of the things that, you know, but 272 00:11:03,040 --> 00:11:06,430 I was still experimenting, you know, and, and I didn't really have any. 273 00:11:07,495 --> 00:11:10,230 I certainly didn't have any written processes, but really didn't even 274 00:11:10,230 --> 00:11:12,480 have like some standard processes. 275 00:11:12,900 --> 00:11:19,200 Uh, so after a couple of years we started developing some pretty standard processes. 276 00:11:19,200 --> 00:11:20,490 This is how we do things. 277 00:11:21,000 --> 00:11:27,810 Um, for instance, we, we were really, um, focused for a couple years and dialed it 278 00:11:27,810 --> 00:11:30,480 in that, you know, man hours on each job. 279 00:11:31,200 --> 00:11:35,070 And so that was the first incentive program I ever came up with was like, 280 00:11:35,520 --> 00:11:39,300 Hey, we sell a job, you're on that job. 281 00:11:39,360 --> 00:11:44,850 If we meet these, um, these hours, you know, if we hit, you know, if 282 00:11:44,850 --> 00:11:48,720 it's a hundred hour job and we get it done in a hundred hours, I'll 283 00:11:48,720 --> 00:11:52,950 give you something, like a dollar for each one of the hours, you know? 284 00:11:52,950 --> 00:11:57,000 And if we go under, great, but if we go over, you don't, we 285 00:11:57,000 --> 00:11:58,620 don't get anything, you know? 286 00:11:59,430 --> 00:12:00,090 Um. 287 00:12:02,775 --> 00:12:05,535 And so when, and I mean, sorry. 288 00:12:05,535 --> 00:12:06,255 Why? 289 00:12:06,375 --> 00:12:09,075 Let's start with why, why would you do that? 290 00:12:10,155 --> 00:12:12,465 Why would, why do we want an incentive plan? 291 00:12:13,035 --> 00:12:18,105 I think that's a good question and for me, and, and I want the 292 00:12:18,105 --> 00:12:20,265 listener to hear me out on this. 293 00:12:21,480 --> 00:12:25,920 If we're, if you are a business leader, if you're an owner, you're 294 00:12:25,920 --> 00:12:30,150 the CEO, you're whatever president, you're just the startup founder. 295 00:12:30,449 --> 00:12:34,920 Doesn't matter if you're inviting people to come on the team, what you have to do. 296 00:12:35,189 --> 00:12:44,100 My goal is, is I've gotta go out front and see what is possible and then have an idea 297 00:12:44,100 --> 00:12:46,860 of what margin can be created and then. 298 00:12:47,250 --> 00:12:52,230 Use that margin to share it with the people that are gonna help me get there. 299 00:12:53,010 --> 00:12:53,910 Does that make sense? 300 00:12:53,970 --> 00:12:54,360 It does. 301 00:12:54,600 --> 00:13:00,060 So that's a broad statement to just say, I know at that point in time, 302 00:13:00,060 --> 00:13:03,270 when you ask me, I know that if I can hit the hours on every one of 303 00:13:03,270 --> 00:13:05,819 these, then we're gonna create. 304 00:13:06,255 --> 00:13:08,115 Way more margin, more money. 305 00:13:08,115 --> 00:13:11,715 We're gonna make this amount of money and every time we go over, 306 00:13:12,015 --> 00:13:13,875 we lose some of that margin. 307 00:13:13,875 --> 00:13:18,194 So if I can incentivize and, and we were, I was, we, like I said, I 308 00:13:18,194 --> 00:13:21,465 had a couple of years of trying it out and I could see we were missing 309 00:13:21,465 --> 00:13:23,564 the mark about 25% of the time. 310 00:13:24,105 --> 00:13:26,265 I'll say at least half of that. 311 00:13:26,295 --> 00:13:29,685 So 12.5% was my estimating process. 312 00:13:29,685 --> 00:13:33,704 But the other part was I left the, you know, I left the job unattended to go. 313 00:13:34,770 --> 00:13:39,270 Uh, you know, do another estimate or do some invoicing or see a customer 314 00:13:39,270 --> 00:13:40,650 about something else, whatever. 315 00:13:40,680 --> 00:13:41,130 Right? 316 00:13:41,579 --> 00:13:45,120 And you'd be gone half the day or the day and just wor work didn't get done. 317 00:13:45,209 --> 00:13:48,150 You know, even if you had a right hand guy or girl or whatever. 318 00:13:48,870 --> 00:13:51,120 And so, not 319 00:13:53,459 --> 00:13:54,810 back to the leadership part. 320 00:13:56,160 --> 00:14:01,020 What I have to remind myself, I have to remind myself all the time still is that. 321 00:14:01,950 --> 00:14:08,700 I can get people fired up about things, you know, the team and all of that stuff, 322 00:14:08,700 --> 00:14:12,570 but ultimately to get 'em fired up and, and, and have it be sustainable, they 323 00:14:12,570 --> 00:14:14,700 need to understand what's in it for them. 324 00:14:15,660 --> 00:14:20,460 So an incentive program really starts to put that, um, that talk 325 00:14:20,610 --> 00:14:22,980 or that my money where my mouth is. 326 00:14:23,700 --> 00:14:25,830 And so I was like, Hey, we gotta hit these hours. 327 00:14:25,830 --> 00:14:26,760 We gotta hit these hours. 328 00:14:27,150 --> 00:14:31,500 Oh, by the way, I've created this plan and if we hit these hours, you 329 00:14:31,500 --> 00:14:34,560 know, you get a dollar for every one of the hours that, that, that. 330 00:14:35,125 --> 00:14:36,415 That, that's on the job. 331 00:14:37,135 --> 00:14:41,875 Um, and, and it was just pretty simple math and, and, uh, and it, and it worked. 332 00:14:41,875 --> 00:14:44,965 And what it did was it got everyone rowing in the same direction. 333 00:14:44,965 --> 00:14:49,035 I. It got everyone focused on this is the most important thing. 334 00:14:49,185 --> 00:14:50,745 Well, in at that time. 335 00:14:51,495 --> 00:14:53,775 Um, it got everyone focused on production. 336 00:14:53,775 --> 00:14:57,194 It got everyone focused on, you know, managing their time. 337 00:14:57,194 --> 00:15:00,915 It got everyone focused on, Hey, we want to go ahead and spend an extra 338 00:15:00,944 --> 00:15:03,795 hour or two hours to get that job done. 339 00:15:03,855 --> 00:15:09,015 We might work a little late until six o'clock so we don't have to spend the 340 00:15:09,015 --> 00:15:13,305 extra hours of cleaning up the job site, loading up, driving back to the shop. 341 00:15:14,340 --> 00:15:16,230 Uh, doing whatever you gotta do there. 342 00:15:16,230 --> 00:15:19,740 Clocking out, coming in the next morning, clocking in, loading up 343 00:15:19,740 --> 00:15:23,400 in the truck, driving to the job set site, finishing that up, and 344 00:15:23,400 --> 00:15:24,930 then finally getting off the job. 345 00:15:24,930 --> 00:15:27,750 Now you're five hours over and you lose. 346 00:15:29,280 --> 00:15:40,350 So why is at the basic foundational level is to get everyone focused on what's 347 00:15:40,350 --> 00:15:43,500 most important and leadership is really. 348 00:15:44,819 --> 00:15:48,390 Getting everyone focused on the differences that make the difference. 349 00:15:48,660 --> 00:15:49,800 That's what leadership is. 350 00:15:50,099 --> 00:15:53,370 You gotta have, that's why we say numbers are the language of business. 351 00:15:53,370 --> 00:15:56,339 And if you're gonna run a business, own a business or anything else, you need to 352 00:15:56,339 --> 00:15:59,969 know what that is so you can understand. 353 00:15:59,969 --> 00:16:02,670 I. All the things, right? 354 00:16:02,670 --> 00:16:05,189 You don't understand, understand 'em all, but you need to understand 355 00:16:05,189 --> 00:16:08,550 it's well enough to know these are the most important things. 356 00:16:08,790 --> 00:16:11,790 Now I can focus these guys on this, and that's gonna be different for each 357 00:16:11,790 --> 00:16:13,740 department group or achievable goals. 358 00:16:13,740 --> 00:16:15,270 Clear, pretty much achievable goals, 359 00:16:15,330 --> 00:16:19,199 Speaker 2: and that helps you formulate that incentive formulation of that. 360 00:16:19,260 --> 00:16:19,814 Exactly. 361 00:16:19,814 --> 00:16:20,069 Right. 362 00:16:20,430 --> 00:16:20,699 Sid: Yeah. 363 00:16:21,465 --> 00:16:22,755 Does that answer your question? 364 00:16:22,755 --> 00:16:22,905 It does. 365 00:16:22,905 --> 00:16:22,906 Yes. 366 00:16:22,911 --> 00:16:23,925 That was very long-winded. 367 00:16:23,925 --> 00:16:24,165 I'm sorry. 368 00:16:24,165 --> 00:16:24,314 'cause 369 00:16:24,314 --> 00:16:27,405 Speaker 2: a lot of people say, uh, the incentive is they get to work here. 370 00:16:27,735 --> 00:16:27,824 Mm-hmm. 371 00:16:27,824 --> 00:16:30,045 Well, well I, but I think to That's at a 372 00:16:30,045 --> 00:16:30,885 Sid: very low level. 373 00:16:30,915 --> 00:16:31,305 Yeah. 374 00:16:31,310 --> 00:16:31,400 Speaker 2: Yeah. 375 00:16:31,425 --> 00:16:37,365 But I think to create, to create, you know, excitement 376 00:16:37,395 --> 00:16:39,300 around them coming to work. 377 00:16:39,944 --> 00:16:40,185 Sid: Yeah. 378 00:16:40,665 --> 00:16:44,204 Speaker 2: And giving the, giving your team members a sense of ownership. 379 00:16:44,204 --> 00:16:45,584 You've gotta bring them in the process. 380 00:16:45,615 --> 00:16:45,735 Yeah. 381 00:16:46,485 --> 00:16:47,564 And a lot of times. 382 00:16:50,340 --> 00:16:54,840 I have failed to, to bring the team members into the process and 383 00:16:54,840 --> 00:16:56,070 say, this is where we're going. 384 00:16:56,070 --> 00:16:57,720 I'm just like, go do, do that. 385 00:16:57,960 --> 00:16:58,440 Sid: Right? 386 00:16:58,650 --> 00:17:00,330 Speaker 2: You know, here's the task, go do it. 387 00:17:00,450 --> 00:17:00,810 But. 388 00:17:01,095 --> 00:17:03,345 Giving them some ownership, I think is important. 389 00:17:05,055 --> 00:17:06,105 Sid: 100%. 390 00:17:06,194 --> 00:17:11,145 And the way I like to think about it is, is I, I think most people listening to 391 00:17:11,235 --> 00:17:15,585 the podcast, um, and, and most people I ever talk to about this have, have 392 00:17:15,585 --> 00:17:17,500 had some experience with team sports. 393 00:17:19,050 --> 00:17:24,659 And the leader, the CEO, the president, the manager, whatever is you, you, you 394 00:17:24,659 --> 00:17:26,520 gotta think of yourself as the head coach. 395 00:17:27,089 --> 00:17:32,040 And if I just bark at my players to, you know, block right? 396 00:17:32,550 --> 00:17:37,470 Without explaining the why, and then incentivizing the good behavior. 397 00:17:38,250 --> 00:17:42,449 I'm not, it's not very sustainable for them to do what I need them 398 00:17:42,449 --> 00:17:44,760 to do over a period of time. 399 00:17:45,720 --> 00:17:47,610 Um, it's sort of like your kids, right? 400 00:17:47,760 --> 00:17:49,020 There's some overlaps there. 401 00:17:49,439 --> 00:17:51,419 If all I do is complain to them, I. 402 00:17:52,410 --> 00:17:54,000 About not making the bed. 403 00:17:54,330 --> 00:17:55,800 They're never gonna want to do it. 404 00:17:56,370 --> 00:17:58,290 It not that they're ever gonna want to, right? 405 00:17:58,290 --> 00:18:02,160 But there'll be that, that, that will sort of diminish a little bit. 406 00:18:02,160 --> 00:18:06,750 If you kind of explain the why you, you go ahead and you put your arm around 'em, you 407 00:18:06,750 --> 00:18:11,820 help 'em, and, and you build a little bit of a relationship with them, that's way 408 00:18:11,820 --> 00:18:14,965 more sustainable than just barking at 'em. 409 00:18:15,030 --> 00:18:15,690 And so. 410 00:18:17,115 --> 00:18:22,455 I think that incentive plan or incentives in general are just a tool for me to 411 00:18:22,545 --> 00:18:27,255 bridge the gap and build a relationship and then also put my money where my mouth 412 00:18:27,255 --> 00:18:29,985 is and show them what's in it for them. 413 00:18:30,075 --> 00:18:32,415 Uh, is there an acronym like W Em or something? 414 00:18:32,415 --> 00:18:33,255 What's in it for me? 415 00:18:33,645 --> 00:18:34,455 There's something like that. 416 00:18:34,455 --> 00:18:36,375 Josh De Plan says that all the time. 417 00:18:36,795 --> 00:18:39,765 Speaker 2: Well, that may be text lingo 'cause my kids will send me 418 00:18:39,765 --> 00:18:42,735 like letters on a text and I don't know what that means a lot either. 419 00:18:42,735 --> 00:18:43,935 I'm like, what does this mean? 420 00:18:43,935 --> 00:18:44,415 Yeah. 421 00:18:46,005 --> 00:18:50,955 But, so there was a study, Harvard Business Review did, and they fell, and 422 00:18:51,765 --> 00:18:59,385 this is like in highlights, well-designed incentive plans, increased employee 423 00:18:59,385 --> 00:19:02,295 motivation and productivity by 20 to 30%. 424 00:19:02,355 --> 00:19:02,655 Sid: Yeah. 425 00:19:03,105 --> 00:19:05,115 Speaker 2: But well-designed is the key there. 426 00:19:05,985 --> 00:19:06,315 Sid: Yeah. 427 00:19:06,345 --> 00:19:07,905 Well designed is, is the key. 428 00:19:07,910 --> 00:19:11,115 And, and we're gonna get into that a lot today. 429 00:19:11,205 --> 00:19:11,865 Um. 430 00:19:13,455 --> 00:19:16,425 I'll also say as we, as right as we're getting started, it's 431 00:19:16,425 --> 00:19:18,014 not always money, you know? 432 00:19:18,045 --> 00:19:18,105 Yeah. 433 00:19:18,105 --> 00:19:19,785 Sometimes it's just recognition. 434 00:19:20,145 --> 00:19:28,110 Speaker 2: Well, I think you, I saw a study that Gen Z is more, um, like. 435 00:19:29,190 --> 00:19:30,390 Pat on the back base. 436 00:19:30,450 --> 00:19:30,720 Yeah. 437 00:19:30,990 --> 00:19:34,410 If you can give, if you can give a Gen ZA pat on the back, it's what 438 00:19:34,440 --> 00:19:37,260 it, it's even greater than monetary. 439 00:19:37,320 --> 00:19:37,470 Sid: Yeah. 440 00:19:37,470 --> 00:19:39,630 Their love language is words of affirmation, I'm sure. 441 00:19:39,630 --> 00:19:39,690 Yeah. 442 00:19:39,690 --> 00:19:39,870 They gotta 443 00:19:39,870 --> 00:19:41,190 Speaker 2: feel like they're making a difference. 444 00:19:41,190 --> 00:19:41,550 Sid: Right? 445 00:19:41,970 --> 00:19:42,180 Yeah. 446 00:19:42,210 --> 00:19:48,570 And, um, I think, I think a, a good incentive program is holistic 447 00:19:48,600 --> 00:19:50,220 and sort of covers a lot of that. 448 00:19:50,820 --> 00:19:54,300 Speaker 2: This surprised me also when I saw this, this stat. 449 00:19:54,960 --> 00:20:01,379 Gallup did a poll and in 2023 and 23% of employees feel engaged at work. 450 00:20:02,280 --> 00:20:02,790 Sid: Oof. 451 00:20:03,780 --> 00:20:04,409 That's scary. 452 00:20:04,530 --> 00:20:05,070 Well, 453 00:20:07,110 --> 00:20:10,110 that's, uh, that could be a good thing or a bad thing if 454 00:20:10,110 --> 00:20:11,280 you're competing in the market. 455 00:20:11,280 --> 00:20:12,480 That's a good thing, right? 456 00:20:12,510 --> 00:20:14,129 Because you can, you can be that. 457 00:20:15,300 --> 00:20:19,380 You could be that 20, 26%, you know, you could serve that. 458 00:20:19,380 --> 00:20:23,070 You could be that person that's serving those, you know, those people. 459 00:20:23,370 --> 00:20:28,170 And then the talent from the other places that are not serving them will 460 00:20:28,170 --> 00:20:29,910 eventually make their way to your shop. 461 00:20:31,440 --> 00:20:33,870 Every obstacle's an opportunity, right? 462 00:20:34,740 --> 00:20:37,380 Um, so when. 463 00:20:38,190 --> 00:20:41,220 To implement, uh, an incentive program. 464 00:20:42,150 --> 00:20:46,770 And I alluded to that with my first example is, is when you've got some 465 00:20:46,770 --> 00:20:51,510 systems in place, like this is how you've done, this is how we're going to do it. 466 00:20:52,440 --> 00:20:58,350 Um, and you've done the math on making sure that, one, you're not giving away the 467 00:20:58,350 --> 00:21:03,450 farm, but two, that uh, that it's enough. 468 00:21:03,915 --> 00:21:11,295 A difference to make the difference if you give everyone a dollar in 19. 469 00:21:12,899 --> 00:21:17,879 35 maybe that works, but in 2025, a dollar doesn't move the needle. 470 00:21:17,879 --> 00:21:22,139 Not doing a hundred dollars is okay, but you know, if it's once 471 00:21:22,139 --> 00:21:25,920 a month, a hundred dollars a month isn't, isn't a big enough hit. 472 00:21:26,909 --> 00:21:30,840 And maybe you're not at that point where you can do a thousand dollars a month. 473 00:21:30,870 --> 00:21:33,870 Hell, I don't know that I am either, but especially with all 474 00:21:33,870 --> 00:21:37,350 the people, but the key people, if you can get it to, you know. 475 00:21:38,310 --> 00:21:43,020 A hundred dollars a week or something like that and still only give out 476 00:21:43,020 --> 00:21:47,430 about 10% of that margin, then you're winning, winning, winning. 477 00:21:48,540 --> 00:21:54,240 Um, so when you implement a system is almost, it is as important as why 478 00:21:55,350 --> 00:21:58,410 the system is, is very important. 479 00:21:58,710 --> 00:22:04,110 But here's the one key piece that most people don't consider who 480 00:22:04,110 --> 00:22:06,450 is going to manage that process? 481 00:22:07,710 --> 00:22:11,580 Because if you're going to implement an incentive program and you're the 482 00:22:11,580 --> 00:22:17,490 person that has to sort of, you know, collect the data, crunch the data, 483 00:22:17,730 --> 00:22:21,870 come up with the, uh, the end game consistently at the end of each month, 484 00:22:21,870 --> 00:22:26,730 or the 15th and the 30th, whatever the, the system is, if you're that person 485 00:22:26,730 --> 00:22:31,020 and you don't have the capacity to do so, then you're gonna drop the ball. 486 00:22:31,020 --> 00:22:32,820 And let me tell you what you never want to do. 487 00:22:32,820 --> 00:22:36,240 You wanna lose some trust real quick, start messing up on an incentive program. 488 00:22:36,885 --> 00:22:37,455 Speaker 2: Oh, definitely. 489 00:22:37,455 --> 00:22:39,405 Sid: So people will just say you're a big fat liar. 490 00:22:39,465 --> 00:22:40,845 'cause they think that anyways. 491 00:22:41,085 --> 00:22:43,485 Or don't come through with what's promised or don't come 492 00:22:43,485 --> 00:22:44,475 through with what's promised. 493 00:22:44,535 --> 00:22:44,595 Yeah. 494 00:22:44,595 --> 00:22:45,855 'cause you didn't do the math right. 495 00:22:45,915 --> 00:22:47,175 And hey, we did. 496 00:22:47,205 --> 00:22:48,465 Or you didn't explain it right. 497 00:22:48,465 --> 00:22:52,005 Like, Hey, we don't pay this out until we get paid from the customer. 498 00:22:52,245 --> 00:22:53,085 Well, that's not fair. 499 00:22:53,085 --> 00:22:55,965 I'm like, I don't know why that would be unfair. 500 00:22:55,965 --> 00:22:58,335 I don't have the money until those people pay us. 501 00:22:59,475 --> 00:23:03,735 Uh, so you gotta come up with a system. 502 00:23:04,650 --> 00:23:07,650 You've gotta be at a certain scale that you probably have some 503 00:23:07,650 --> 00:23:11,250 help, help coming, you know, to, like, maybe you got a bookkeeper, 504 00:23:11,250 --> 00:23:12,690 maybe you got an office manager. 505 00:23:12,690 --> 00:23:16,140 Maybe you've got someone that can help. 506 00:23:16,320 --> 00:23:17,130 Or maybe not. 507 00:23:17,160 --> 00:23:20,580 Maybe you're the person, uh, that's implementing it and you're not, you 508 00:23:20,580 --> 00:23:24,810 know, a hundred percent in sales or, or something that's gonna drag you away 509 00:23:24,810 --> 00:23:26,250 from it and keep your eye off the ball. 510 00:23:26,760 --> 00:23:28,170 Uh, if you can do it, that's great. 511 00:23:28,170 --> 00:23:30,030 My hat's off to you, but most of the time I've. 512 00:23:31,320 --> 00:23:36,149 I have needed to delegate that to someone that's going to consistently do it. 513 00:23:36,629 --> 00:23:37,830 That's when it really works. 514 00:23:38,370 --> 00:23:40,770 Speaker 2: Hey guys, I wanna tell you about my friend Wes Cody. 515 00:23:41,190 --> 00:23:44,970 He's the president of C two Wealth Strategies, a financial advisory firm 516 00:23:44,970 --> 00:23:48,720 dedicated to providing personalized solutions for your financial needs. 517 00:23:49,110 --> 00:23:52,560 Wes and his team of professionals are passionate about helping clients 518 00:23:52,560 --> 00:23:57,180 create wealth and achieve financial freedom as C two wealth strategies. 519 00:23:57,180 --> 00:24:01,470 They believe in taking a holistic approach to financial planning and are committed 520 00:24:01,470 --> 00:24:05,730 to building long lasting relationships with their clients, ensuring their. 521 00:24:05,770 --> 00:24:08,260 Financial wellbeing every step of the way. 522 00:24:08,740 --> 00:24:11,110 Don't leave your financial future to chance. 523 00:24:11,410 --> 00:24:16,629 Contact Wes and C2 Wealth today@c2wealth.com to 524 00:24:16,629 --> 00:24:18,010 schedule a consultation. 525 00:24:18,280 --> 00:24:21,850 Let Wes and his team help you build your financial future. 526 00:24:22,054 --> 00:24:24,544 Sid: If you're a small business owner looking to take your business 527 00:24:24,544 --> 00:24:26,315 to the next level, listen up. 528 00:24:26,585 --> 00:24:30,155 My good friend Chris Francis, has spent over 20 years growing his tree 529 00:24:30,155 --> 00:24:32,105 care business to national success. 530 00:24:32,315 --> 00:24:33,965 Now he's partnered with Rick Miller. 531 00:24:34,024 --> 00:24:36,215 You've probably heard him here on the podcast before. 532 00:24:36,455 --> 00:24:41,284 Harvard, MBA and business consultant to create Roadmap for Growth, an 533 00:24:41,284 --> 00:24:45,875 online course to help you scale build teams and create systems that last, 534 00:24:46,294 --> 00:24:47,975 it's not just for the tree industry. 535 00:24:48,155 --> 00:24:51,185 This course applies to any small service business. 536 00:24:51,630 --> 00:24:55,290 Check out tree business.com or hit the link on the overlap 537 00:24:55,290 --> 00:24:56,550 homepage to learn more. 538 00:25:00,449 --> 00:25:05,429 Speaker 2: Do you find that individual incentives work or team base? 539 00:25:05,460 --> 00:25:06,600 Sid: I like a little bit of both. 540 00:25:07,590 --> 00:25:08,580 I like a little bit of both. 541 00:25:08,580 --> 00:25:12,090 We have an entire team base incentive program. 542 00:25:12,090 --> 00:25:17,280 We call it a, a self-funded incentive plan, and we have a certain, uh, 543 00:25:17,550 --> 00:25:20,790 dollar amount in our budget every year, and it's, and it's pretty large. 544 00:25:21,330 --> 00:25:23,310 And if we hit the quarterly goal. 545 00:25:23,909 --> 00:25:29,729 For the first quarter, we pay out 10% of that budgeted amount, and it goes 546 00:25:29,729 --> 00:25:34,530 to everyone on the team from, uh, the guy on the front lines swinging a weed 547 00:25:34,530 --> 00:25:39,030 eater to the guy managing, managing director of operations, and they're 548 00:25:39,030 --> 00:25:40,649 all gonna get the exact same amount. 549 00:25:41,760 --> 00:25:44,550 Um, and the first quarter it's a low amount, but we haven't 550 00:25:44,550 --> 00:25:45,810 collected a bunch of money yet. 551 00:25:46,260 --> 00:25:48,870 So it's 10% of what, let's say it's a hundred thousand dollars. 552 00:25:48,870 --> 00:25:51,780 So there's $10,000 to share between, let's say 40 people. 553 00:25:52,725 --> 00:25:54,225 And, and you've gotta qualify for it. 554 00:25:54,225 --> 00:25:56,625 So you have to be there past your first 90 days. 555 00:25:56,625 --> 00:25:59,085 This is just an idea of an incentive plan. 556 00:25:59,715 --> 00:26:03,045 Um, so you have to be there for the first, no, you, you've had to have worked 557 00:26:03,585 --> 00:26:08,775 your full 90 days past your probationary period and worked that whole quarter as 558 00:26:08,775 --> 00:26:11,415 a full fledged, you know, team member. 559 00:26:11,505 --> 00:26:14,595 Uh, you can give some people some exemptions on that. 560 00:26:14,595 --> 00:26:19,155 I don't do it very often, but there might be a guy we hire in as like a, as a, uh, 561 00:26:19,185 --> 00:26:22,575 an account manager and he is got a lot of experience and we're whatever, you 562 00:26:22,575 --> 00:26:23,565 know, we're just getting 'em on there. 563 00:26:23,565 --> 00:26:27,165 But usually there's not any, uh, ex exemptions. 564 00:26:27,495 --> 00:26:28,935 So they've worked that full quarter. 565 00:26:29,715 --> 00:26:30,255 There you go. 566 00:26:30,255 --> 00:26:31,305 And it limits your number. 567 00:26:31,305 --> 00:26:34,365 You know, those people that turn over, they just never get in that pool. 568 00:26:35,085 --> 00:26:36,885 Um, you can miss that first quarter. 569 00:26:36,915 --> 00:26:39,795 Let's say that, say you've gotta have a 10% net profit. 570 00:26:40,380 --> 00:26:43,560 Because we've done the math, we're typically at 8%. 571 00:26:43,560 --> 00:26:47,520 If we can get another 2%, 2% on the net profit of there pays everybody, 572 00:26:47,580 --> 00:26:48,600 you know, it pays for it all. 573 00:26:49,290 --> 00:26:50,370 And then some, right? 574 00:26:50,430 --> 00:26:52,410 And then some is the most important part. 575 00:26:52,410 --> 00:26:54,360 Like you can't give away the whole farm. 576 00:26:54,660 --> 00:26:59,190 'cause if you're owning, you're carrying the risk and you don't know what's 577 00:26:59,190 --> 00:27:00,720 coming around the corner the next month. 578 00:27:01,350 --> 00:27:03,510 So you gotta keep socking away. 579 00:27:03,780 --> 00:27:06,480 Then the second quarter, um, you hit that target. 580 00:27:06,480 --> 00:27:08,130 Let's say it's 10%, whatever. 581 00:27:08,520 --> 00:27:09,300 Um. 582 00:27:09,675 --> 00:27:12,165 At that quarter and you, you didn't hit it in the first quarter. 583 00:27:12,165 --> 00:27:14,925 You can, you can, you'll pay out 30% that point. 584 00:27:15,615 --> 00:27:16,905 'cause it's 10 plus 20. 585 00:27:17,115 --> 00:27:18,765 Or they, you hit the first quarter. 586 00:27:18,825 --> 00:27:21,315 You only hit the you and then you pay out the second quarter. 587 00:27:21,315 --> 00:27:23,685 That's 20% of that a hundred thousand. 588 00:27:23,745 --> 00:27:24,045 Right. 589 00:27:25,215 --> 00:27:27,345 Third quarter would be 30% four. 590 00:27:27,405 --> 00:27:28,965 Fourth quarter would be 40%. 591 00:27:28,965 --> 00:27:30,435 You add it all up, that's a hundred percent. 592 00:27:30,435 --> 00:27:30,885 It's crazy. 593 00:27:30,885 --> 00:27:31,185 Right. 594 00:27:31,200 --> 00:27:35,160 Yeah, but let's say you miss first, second, third quarter, you 595 00:27:35,160 --> 00:27:37,470 can still keep people engaged. 596 00:27:37,620 --> 00:27:41,520 And as a coach I can still say, look guys, we can still win this. 597 00:27:41,820 --> 00:27:43,290 It's my job to do the plan. 598 00:27:43,290 --> 00:27:44,310 How are we gonna win this? 599 00:27:44,700 --> 00:27:48,540 But we can still win this with a Hail Mary at the end of the fourth quarter. 600 00:27:48,570 --> 00:27:52,830 We can get a hundred percent payout on this thing with all of you that 601 00:27:52,830 --> 00:27:56,610 have stuck out the whole, that stuck around the whole year and. 602 00:27:57,030 --> 00:27:59,820 You can get some people fired up about that, but you can also 603 00:27:59,820 --> 00:28:02,970 keep 'em fired up, hitting the, the quarters one after another. 604 00:28:03,330 --> 00:28:07,530 And it's at a frequency, and it's generally since it, since it's, uh, 605 00:28:07,650 --> 00:28:12,900 economical and, and, and, um, equitable if you will, everyone's got the same 606 00:28:12,900 --> 00:28:14,310 amount people can get behind it. 607 00:28:15,480 --> 00:28:18,870 But those folks that are driving each department. 608 00:28:19,695 --> 00:28:21,795 You can come up with a different program for them. 609 00:28:21,795 --> 00:28:24,765 Maybe it's every quarter, maybe it's every month, maybe it's twice a year. 610 00:28:25,035 --> 00:28:27,345 It, it kind of depends on your cycle. 611 00:28:28,035 --> 00:28:29,655 And every business has a cycle. 612 00:28:30,165 --> 00:28:32,835 Uh, quarters work pretty well for us, but maybe they don't 613 00:28:32,835 --> 00:28:34,065 work for some other places. 614 00:28:34,125 --> 00:28:36,345 Um, we've got some highs and lows too. 615 00:28:36,915 --> 00:28:41,085 And uh, you just gotta give it some thought, but when. 616 00:28:42,675 --> 00:28:46,875 Back to that question, when is when you've got some good systems in place, 617 00:28:47,115 --> 00:28:51,465 you've got some record, some track records, you know what success looks 618 00:28:51,465 --> 00:28:54,225 like, and you probably have someone. 619 00:28:54,555 --> 00:28:59,625 To help you implement or, uh, keep track of this, keeping track of it is so hard. 620 00:29:00,255 --> 00:29:01,995 Speaker 2: I think a good place to start though. 621 00:29:02,445 --> 00:29:07,005 Um, and I've done this is a non-cash incentive. 622 00:29:07,035 --> 00:29:07,425 Sid: Okay. 623 00:29:07,455 --> 00:29:07,695 Speaker 2: Yeah. 624 00:29:07,695 --> 00:29:08,025 I love it. 625 00:29:08,025 --> 00:29:11,205 And, and so like travel or mm-hmm. 626 00:29:11,250 --> 00:29:13,275 Give them a night at a hotel. 627 00:29:13,455 --> 00:29:13,515 Yeah. 628 00:29:13,515 --> 00:29:19,125 Or, you know, get them a, uh, Chick-fil-A card. 629 00:29:19,395 --> 00:29:19,485 Sid: Mm-hmm. 630 00:29:19,965 --> 00:29:23,985 Speaker 2: You know, if you do well on a project and can, can afford it. 631 00:29:24,690 --> 00:29:25,980 Start the incentives there. 632 00:29:26,040 --> 00:29:26,310 Yeah. 633 00:29:27,390 --> 00:29:31,650 And then you'll see, because I, I used to do gift cards a lot and Yeah. 634 00:29:31,710 --> 00:29:34,200 I saw like they would look forward to it, 635 00:29:34,440 --> 00:29:34,920 Sid: man. 636 00:29:34,980 --> 00:29:38,880 So you're hitting on one of the things where I was gonna actually circle 637 00:29:38,880 --> 00:29:44,130 back around and say, not everything has to be some well thought out plan. 638 00:29:44,220 --> 00:29:47,460 If all you're trying to do is catch people doing something right. 639 00:29:47,640 --> 00:29:47,970 Right. 640 00:29:48,030 --> 00:29:49,200 That's a different deal. 641 00:29:50,125 --> 00:29:52,530 And, and maybe you can call it incentive plan. 642 00:29:53,250 --> 00:29:59,580 All you're really doing is you might have $200 of, of, of $20 Chick-fil-A gift 643 00:29:59,580 --> 00:30:04,409 cards, you know, and all you're doing is passing those out when you see, uh, 644 00:30:04,439 --> 00:30:09,629 Jimmy did a great job with this customer and the customer called in and said, man. 645 00:30:10,034 --> 00:30:12,195 I just wanted to let you know Jimmy's great you go. 646 00:30:12,375 --> 00:30:13,514 I really appreciate that. 647 00:30:13,514 --> 00:30:14,504 You know what I'm gonna do? 648 00:30:14,774 --> 00:30:16,095 We're gonna tip him for you. 649 00:30:16,425 --> 00:30:20,325 We've got a 20, we've got $20 gift cards that we give out, and uh, we'll 650 00:30:20,325 --> 00:30:21,524 make sure we give him one of those. 651 00:30:21,524 --> 00:30:23,955 And thank you so much for giving us a call and giving us that feedback. 652 00:30:23,955 --> 00:30:28,304 You know what you've done, you've made that customer, I. Uh, know that your, 653 00:30:28,574 --> 00:30:30,135 that their feedback is appreciated. 654 00:30:30,554 --> 00:30:34,845 You, you let that customer know that you appreciate the team member and you've 655 00:30:34,845 --> 00:30:37,905 got a little thing that you're gonna do for 'em and they feel good about it. 656 00:30:37,905 --> 00:30:41,415 And then you go give Jimmy the, uh, the gift card. 657 00:30:41,415 --> 00:30:45,495 You say, man, Ms. Morgan said that you did a fantastic job. 658 00:30:45,495 --> 00:30:46,754 I just wanna say thanks. 659 00:30:47,324 --> 00:30:49,064 Take this, do whatever you want. 660 00:30:49,635 --> 00:30:55,034 Um, $20 cash is pretty good, uh, but whatever you want to do, but it. 661 00:30:56,879 --> 00:31:04,740 The idea behind that is that it's, um, it's not, uh, systemic or system based. 662 00:31:04,770 --> 00:31:07,410 It's more of when I see it, I say it. 663 00:31:08,700 --> 00:31:09,540 Does that make sense? 664 00:31:09,540 --> 00:31:14,250 And I think it keeps people from getting entitled and it makes 665 00:31:14,250 --> 00:31:15,900 it seem a little more genuine. 666 00:31:16,800 --> 00:31:20,040 And if you, and if you spread it around and, and you're really, 667 00:31:20,100 --> 00:31:24,510 uh, you know, thoughtful about it, you're going to keep people. 668 00:31:24,885 --> 00:31:29,865 You know, focused on doing a good job and you're probably building 669 00:31:29,865 --> 00:31:32,655 a lot of bridges and building a lot of relationships that way. 670 00:31:33,465 --> 00:31:34,995 It's infrequent, it's nice. 671 00:31:34,995 --> 00:31:36,525 It doesn't have to be full systemic. 672 00:31:36,525 --> 00:31:36,945 I love it. 673 00:31:39,435 --> 00:31:40,455 Speaker 2: It's really hard. 674 00:31:41,675 --> 00:31:42,275 Early on. 675 00:31:42,495 --> 00:31:42,915 Mm-hmm. 676 00:31:43,000 --> 00:31:45,690 To be, to, to have an incentive plan. 677 00:31:45,690 --> 00:31:50,760 It really is that that is dedicated, that we're gonna do this every time. 678 00:31:50,760 --> 00:31:53,010 Sid: And if you just took out a hundred dollars and you had it 679 00:31:53,010 --> 00:31:54,810 in a cat, like in your, yeah. 680 00:31:54,900 --> 00:32:00,241 Console of your truck or something, and it's all in tens or something, and you 681 00:32:00,246 --> 00:32:05,490 give someone a $10 bill, you know, you just go, Hey, I just wanna let you know 682 00:32:05,490 --> 00:32:06,930 you're doing a great job this week. 683 00:32:07,605 --> 00:32:10,064 Appreciate it, man, that goes such a long way. 684 00:32:10,095 --> 00:32:13,064 And $10 is almost nothing to 'em. 685 00:32:13,064 --> 00:32:17,175 But they appreciate just the thought, the good people, the right 686 00:32:17,175 --> 00:32:19,274 people appreciate the thought. 687 00:32:20,955 --> 00:32:23,655 And if they don't, maybe they're not the right person on the team. 688 00:32:24,915 --> 00:32:26,595 That's, I just gave them a Yeti cup. 689 00:32:26,835 --> 00:32:27,284 Did you? 690 00:32:27,345 --> 00:32:28,514 Yeah, I got one too. 691 00:32:28,665 --> 00:32:29,024 Oh, 692 00:32:29,024 --> 00:32:29,355 Speaker 2: sweet. 693 00:32:29,385 --> 00:32:30,615 I love the small Yetis. 694 00:32:30,945 --> 00:32:32,355 Yeah, it's the perfect size. 695 00:32:33,044 --> 00:32:34,784 Uh, bourbon goes in there. 696 00:32:34,845 --> 00:32:35,264 Did Stephanie 697 00:32:35,264 --> 00:32:35,625 Sid: tell you that? 698 00:32:36,765 --> 00:32:36,975 Speaker 2: Yeah. 699 00:32:36,975 --> 00:32:37,245 She like, 700 00:32:40,755 --> 00:32:42,225 Sid: even Tim's laughing at that one. 701 00:32:42,555 --> 00:32:43,275 Yeah. 702 00:32:43,275 --> 00:32:44,955 He, I mean these are micro Yetis. 703 00:32:45,225 --> 00:32:46,065 Yeah, they are. 704 00:32:46,425 --> 00:32:47,655 Speaker 2: You know, we're on a budget. 705 00:32:48,195 --> 00:32:48,765 Sid: On a budget. 706 00:32:48,765 --> 00:32:49,125 Yeah. 707 00:32:50,025 --> 00:32:50,955 It's genetic. 708 00:32:51,045 --> 00:32:52,095 Speaker 2: Um, no, no. 709 00:32:52,095 --> 00:32:53,655 Everybody gives a big Yeti out. 710 00:32:53,685 --> 00:32:53,865 Yeah. 711 00:32:53,865 --> 00:32:56,295 But Tim Ounce, the 10 ounce don't happen. 712 00:32:56,475 --> 00:32:58,125 And so I gave those. 713 00:32:58,125 --> 00:32:59,505 Sid: Yeah, they're pretty great actually. 714 00:33:02,295 --> 00:33:03,060 I do like 'em. 715 00:33:08,640 --> 00:33:08,760 Hmm. 716 00:33:09,675 --> 00:33:10,215 Yeah, 717 00:33:16,365 --> 00:33:19,875 I was gonna say coffee is probably the appropriate drink for there, Tim. 718 00:33:20,775 --> 00:33:22,350 Tim's really into the wine right now. 719 00:33:22,350 --> 00:33:26,265 Cheese, he is the wine and, uh, yeah, but I mean, I, and like the, uh, 720 00:33:26,325 --> 00:33:27,975 the club soda and gin or something. 721 00:33:27,975 --> 00:33:28,065 And 722 00:33:28,065 --> 00:33:30,675 Speaker 2: don't worry, Tim, I have gone directly from Coffee 723 00:33:30,675 --> 00:33:31,995 to Bourbon in the same cup. 724 00:33:32,085 --> 00:33:33,015 Oh yeah. 725 00:33:33,135 --> 00:33:34,635 It's not, it's not a bad problem at all. 726 00:33:34,665 --> 00:33:34,935 Sid: Tim. 727 00:33:34,935 --> 00:33:40,995 I also learned in our trip that using the same ice cube for the second glass of 728 00:33:40,995 --> 00:33:44,205 bourbon is very, uh, is a very good call. 729 00:33:44,835 --> 00:33:45,465 I don't know. 730 00:33:45,555 --> 00:33:45,825 Yeah. 731 00:33:45,825 --> 00:33:46,515 Dirty ice. 732 00:33:46,515 --> 00:33:47,265 Dirty ice. 733 00:33:47,265 --> 00:33:48,225 That's what they were all saying. 734 00:33:50,340 --> 00:33:51,360 Speaker 2: Uh, where were we? 735 00:33:52,470 --> 00:33:56,430 We were talk, we were talking about that incentive plans doesn't have to be set. 736 00:33:56,430 --> 00:33:56,490 Yeah. 737 00:33:56,520 --> 00:34:01,140 That we could, we could start out with, you can totally start out with 738 00:34:01,825 --> 00:34:02,985 catching people doing something right? 739 00:34:03,015 --> 00:34:03,305 Yeah. 740 00:34:03,545 --> 00:34:04,545 Catching people doing something right. 741 00:34:05,220 --> 00:34:09,659 Sid: Man, that's such a lost leadership art of just saying thank you. 742 00:34:09,690 --> 00:34:10,470 I've noticed. 743 00:34:10,590 --> 00:34:12,060 Hey, you've done a really good job. 744 00:34:12,060 --> 00:34:14,100 I wanted you to know it hasn't gone unnoticed. 745 00:34:14,610 --> 00:34:16,560 Here's, here's, you know, here's 20 bucks. 746 00:34:18,045 --> 00:34:18,795 Whatever. 747 00:34:19,155 --> 00:34:20,205 Uh, I really appreciate it. 748 00:34:20,205 --> 00:34:23,235 I know it's not, I know it's not a lot, but it's, but it's just a little 749 00:34:23,235 --> 00:34:26,325 bit of a gratitude, you know, a little bit of a token of my gratitude and I 750 00:34:26,325 --> 00:34:27,705 want you to know that I appreciate you. 751 00:34:28,665 --> 00:34:32,745 What I mean, that's, that goes, it goes so far. 752 00:34:33,975 --> 00:34:41,445 Speaker 2: The IRF, I don't know what that is, but Return, return on, no, the. 753 00:34:41,850 --> 00:34:44,159 So the IRF is a, 754 00:34:44,699 --> 00:34:45,719 Sid: oh no, I thought it was RIF. 755 00:34:45,719 --> 00:34:46,080 Sorry, 756 00:34:46,439 --> 00:34:46,919 Speaker 2: I'm dyslexic. 757 00:34:46,919 --> 00:34:49,109 Oh, the Incentive Research Foundation. 758 00:34:50,189 --> 00:34:50,310 Oh. 759 00:34:50,459 --> 00:34:57,029 Found that non-cash incentive programs, if you start, it can 760 00:34:57,359 --> 00:35:00,419 increase employee engagement by 31%. 761 00:35:01,859 --> 00:35:02,310 So. 762 00:35:05,069 --> 00:35:06,000 That's the problem. 763 00:35:06,029 --> 00:35:10,380 I mean, or that's, that's the whole goal, I think, with your team members, 764 00:35:10,380 --> 00:35:12,990 is to keep them engaged in the process. 765 00:35:12,995 --> 00:35:13,035 Yeah. 766 00:35:14,220 --> 00:35:14,520 Sid: Mm-hmm. 767 00:35:15,900 --> 00:35:21,630 And really, I think you've gotta constantly break down the wall of 768 00:35:21,630 --> 00:35:24,390 the idea that society puts out there. 769 00:35:24,420 --> 00:35:29,490 Modern culture puts out there that it's the worker versus management, you know? 770 00:35:29,490 --> 00:35:29,819 Speaker 2: Right. 771 00:35:30,630 --> 00:35:35,700 Sid: Um, and it's not, it's not their fault that they think that way. 772 00:35:36,000 --> 00:35:38,670 It just, that's just what the deal is, you know? 773 00:35:39,150 --> 00:35:44,250 But if you can keep breaking that thing down by bridging gaps and having 774 00:35:44,250 --> 00:35:48,720 incentives and catching people doing something right and genuinely caring, 775 00:35:49,635 --> 00:35:52,410 then um, that starts to melt away. 776 00:35:52,530 --> 00:35:55,320 And people, you, you build up a lot of leadership capital and 777 00:35:55,320 --> 00:35:56,490 you can get a lot of stuff done. 778 00:35:57,285 --> 00:36:00,675 Speaker 2: And I, I, I also think just some kind of 779 00:36:03,585 --> 00:36:05,145 notice that you care. 780 00:36:05,625 --> 00:36:06,135 Yeah. 781 00:36:06,315 --> 00:36:07,695 Helps retention a ton. 782 00:36:07,845 --> 00:36:08,745 Like just a ton. 783 00:36:08,865 --> 00:36:13,305 Someone understanding, Hey, this guy cares about me. 784 00:36:13,695 --> 00:36:13,995 Yeah. 785 00:36:14,235 --> 00:36:15,735 This company cares about me 786 00:36:15,735 --> 00:36:16,605 Sid: 100%. 787 00:36:17,475 --> 00:36:18,495 And it doesn't take much. 788 00:36:18,585 --> 00:36:23,175 And that goes, even if it's someone that, that needs to leave or is going 789 00:36:23,175 --> 00:36:28,245 to leave your organization, if you treat them with respect and you don't take it 790 00:36:28,245 --> 00:36:33,405 all personal, this person's leaving and you treat 'em with respect and think 791 00:36:33,405 --> 00:36:36,825 about it that like, Hey, this person did a great job while they were here. 792 00:36:37,365 --> 00:36:41,265 Um, when they started, we were here, and now that they're leaving, we're here. 793 00:36:42,780 --> 00:36:44,400 We, when he started, we were there. 794 00:36:44,460 --> 00:36:46,020 When he is leaving, we are here. 795 00:36:46,470 --> 00:36:49,620 And, uh, it was a big, he was, this person was a big part of that. 796 00:36:49,680 --> 00:36:55,200 And man, it's funny, just treating people right is the right thing 797 00:36:55,200 --> 00:37:00,090 to do in a number of different ways, but it should also lead back. 798 00:37:00,150 --> 00:37:04,170 You having a good pu uh, uh, uh, reputation as an employer. 799 00:37:06,240 --> 00:37:07,740 And that's kind of what we're all trying to do. 800 00:37:08,069 --> 00:37:13,200 Here's my take on, on, uh, being an employer, especially in the service 801 00:37:13,200 --> 00:37:17,160 industry or no matter what your, um, no matter what your business is 802 00:37:17,160 --> 00:37:22,830 in whatever industry that is, we're all, there's only a finite number 803 00:37:22,890 --> 00:37:25,859 of people out there to do the job. 804 00:37:27,149 --> 00:37:30,330 And so to a certain degree, we're all playing, we're all, 805 00:37:30,450 --> 00:37:32,430 you know, SEC football coaches. 806 00:37:33,405 --> 00:37:36,345 And we're all recruiting out of the same talent pool. 807 00:37:36,405 --> 00:37:37,365 I'll be Nick Saban. 808 00:37:37,425 --> 00:37:37,995 You do. 809 00:37:37,995 --> 00:37:38,985 Look, you would win. 810 00:37:39,165 --> 00:37:44,625 You would, you would win because that guy's the goat dude and he really, he's 811 00:37:44,625 --> 00:37:46,155 one of the most impressive humans ever. 812 00:37:46,305 --> 00:37:53,880 But back to this, um, I. We're all SEC football coaches, and whoever recruits 813 00:37:53,880 --> 00:37:56,940 the best talent for the most part, wins. 814 00:37:56,940 --> 00:38:01,680 Now you've gotta be able to develop that talent and get them all, um, singing outta 815 00:38:01,680 --> 00:38:06,990 the same songbook and rowing in the same direction, uh, but getting the the right. 816 00:38:07,335 --> 00:38:11,985 Horses on the team, or butts on the bus is, is the first step. 817 00:38:12,105 --> 00:38:15,645 And then getting them all to buy into the process is the second step. 818 00:38:16,065 --> 00:38:19,125 Getting them all to execute when it counts is the third. 819 00:38:19,125 --> 00:38:23,145 So, you know, you, you gotta think of it that way and just 820 00:38:23,145 --> 00:38:24,525 start at first principles. 821 00:38:24,525 --> 00:38:26,415 And first principles is, I need talent. 822 00:38:26,445 --> 00:38:27,615 And so how am I gonna do that? 823 00:38:27,615 --> 00:38:28,815 Well, it's e everything. 824 00:38:28,845 --> 00:38:29,625 It's everything. 825 00:38:29,715 --> 00:38:31,455 It's, does your place look good? 826 00:38:31,965 --> 00:38:34,575 Do you, uh, you know, do you have decent equipment? 827 00:38:34,605 --> 00:38:36,195 Are you treating people right? 828 00:38:37,020 --> 00:38:41,370 You know, do you have a well-written ad? All that stuff in the interview 829 00:38:41,370 --> 00:38:44,640 process, are you asking good questions or are you being a jerk about it? 830 00:38:44,640 --> 00:38:47,819 Like, oh, you're gonna have to earn it to work here. 831 00:38:47,879 --> 00:38:49,080 You know, that kind of stuff. 832 00:38:49,080 --> 00:38:50,129 And it's just an attitude. 833 00:38:50,250 --> 00:38:54,390 And then onboarding, do you have a way that you're actually helping them onboard 834 00:38:54,390 --> 00:38:58,470 so they feel like you've, you've given it some thought, you know, um, you've 835 00:38:58,470 --> 00:39:02,250 actually thought about the first time you took a new job and thought, Ooh, there's. 836 00:39:02,560 --> 00:39:03,910 Yeah, it's pretty nerve wracking. 837 00:39:03,910 --> 00:39:06,130 You're a little bit, you got some anxiety going on there. 838 00:39:06,130 --> 00:39:07,090 Do you ease that? 839 00:39:07,480 --> 00:39:09,460 Do you get 'em engaged early? 840 00:39:09,520 --> 00:39:14,020 Do you set 'em up with a mentor, uh, someone to walk 'em through the process? 841 00:39:14,740 --> 00:39:19,240 Do you, do you spend enough time with them in the first, you know, 90 days 842 00:39:19,270 --> 00:39:22,360 you as the president, are you checking in on 'em every couple of weeks and 843 00:39:22,360 --> 00:39:23,920 making sure everything's going okay? 844 00:39:24,975 --> 00:39:30,855 All of those things leaks out into the rest of the talent pool and starts. 845 00:39:30,915 --> 00:39:35,745 Those are, those are, uh, as Chris Bell would put it, those are boomerangs 846 00:39:35,745 --> 00:39:38,715 you're putting out and they're eventually gonna come back to you. 847 00:39:39,855 --> 00:39:43,935 Then if you've got a good incentive program, it keeps everyone engaged 848 00:39:43,965 --> 00:39:50,115 and it makes the leadership words you're putting out there not 849 00:39:50,115 --> 00:39:52,845 ring so hollow and they actually. 850 00:39:54,195 --> 00:39:59,325 Let them know that something's in it for them, not just, you know, 851 00:39:59,384 --> 00:40:01,215 they think it's lining our pockets. 852 00:40:01,215 --> 00:40:05,805 You know, I literally think, uh, before we started discussing our p and l and 853 00:40:05,805 --> 00:40:10,035 all of our other financial data with our entire team, they probably thought I was 854 00:40:10,035 --> 00:40:14,924 just taking wheelbarrow loads of cash home, which is absolutely not the truth. 855 00:40:16,695 --> 00:40:19,575 So, gives you an opportunity to, to explain all of that 856 00:40:19,575 --> 00:40:21,285 too, and, and you really. 857 00:40:22,650 --> 00:40:25,200 Attract, hire and retain the best team members. 858 00:40:25,230 --> 00:40:27,720 If, if, if you got a holistic approach. 859 00:40:31,380 --> 00:40:32,700 Speaker 2: I think incentive planning. 860 00:40:32,700 --> 00:40:37,500 I worked for a company one time, um, in the corporate space where, but 861 00:40:37,500 --> 00:40:41,190 that was complicated where I was, um, 862 00:40:44,009 --> 00:40:45,630 like salary plus. 863 00:40:45,690 --> 00:40:45,840 Mm-hmm. 864 00:40:47,100 --> 00:40:48,600 But I never knew. 865 00:40:49,695 --> 00:40:50,715 What the Plus was. 866 00:40:50,745 --> 00:40:50,955 Sid: Yeah. 867 00:40:51,345 --> 00:40:53,085 Speaker 2: Like I never knew how to get to the plus. 868 00:40:53,145 --> 00:40:53,265 Sid: Yeah. 869 00:40:53,265 --> 00:40:55,600 It's, it's crazy how they make it all complicated. 870 00:40:55,600 --> 00:40:55,720 So 871 00:40:55,725 --> 00:40:56,535 Speaker 2: it wasn't clear. 872 00:40:56,535 --> 00:40:56,895 It wasn't clear at all. 873 00:40:57,135 --> 00:40:57,375 Sid: Yeah. 874 00:40:57,585 --> 00:41:01,455 Speaker 2: And so it, it was very demotivating for me to ever try because I 875 00:41:01,455 --> 00:41:05,505 was like, I, one month I'd hit it the next month I didn't and I had the same sales. 876 00:41:05,505 --> 00:41:06,195 So I don't know. 877 00:41:07,185 --> 00:41:07,635 Yeah. 878 00:41:08,145 --> 00:41:09,015 Like what breaks up. 879 00:41:09,015 --> 00:41:15,045 So I think you have to be very clear on what the incentive plan is. 880 00:41:15,450 --> 00:41:15,900 Yeah. 881 00:41:16,140 --> 00:41:17,790 What is the, what is the incentive? 882 00:41:17,820 --> 00:41:20,220 And I think you have to make it available 883 00:41:22,410 --> 00:41:25,230 to, for everyone 884 00:41:25,230 --> 00:41:25,860 Sid: to know. 885 00:41:26,130 --> 00:41:26,460 Yeah. 886 00:41:26,820 --> 00:41:28,890 A ninth grader should be able to understand. 887 00:41:28,890 --> 00:41:28,980 Right. 888 00:41:29,280 --> 00:41:30,300 Your incentive for Yeah. 889 00:41:30,390 --> 00:41:33,240 Speaker 2: If I do this and excel at this. 890 00:41:33,330 --> 00:41:33,600 Yeah. 891 00:41:33,630 --> 00:41:34,410 This happens. 892 00:41:34,440 --> 00:41:34,740 Sid: Yeah. 893 00:41:34,770 --> 00:41:35,610 Keep it simple. 894 00:41:35,880 --> 00:41:36,150 Yeah. 895 00:41:37,775 --> 00:41:42,300 It, it, it's like any other, it's like any other leadership. 896 00:41:43,140 --> 00:41:43,680 Thing. 897 00:41:43,860 --> 00:41:46,830 You know, any directive, you gotta keep it simple. 898 00:41:46,890 --> 00:41:50,040 And the, and the, the more simple it is, the better it 899 00:41:50,040 --> 00:41:50,400 Speaker 2: is. 900 00:41:50,580 --> 00:41:55,020 Another thing I would do when I started my company is I would, I would speak in. 901 00:41:55,785 --> 00:41:56,504 What ifs. 902 00:41:56,924 --> 00:41:58,875 If we do this, then I'm gonna do this. 903 00:41:59,115 --> 00:41:59,205 Oh. 904 00:41:59,504 --> 00:42:01,154 And I think that's demotivating too. 905 00:42:01,154 --> 00:42:03,734 When you are, when you start out early with your team members. 906 00:42:03,794 --> 00:42:04,125 Okay. 907 00:42:04,185 --> 00:42:07,484 Is speaking in the What if we do well this month? 908 00:42:07,484 --> 00:42:09,075 I'm gonna make sure you get it. 909 00:42:09,435 --> 00:42:11,685 Oh, so you weren't really define, it was fuzzy. 910 00:42:11,924 --> 00:42:14,355 What well was, I think you, yeah, you gotta define what well is, 911 00:42:14,384 --> 00:42:14,924 Sid: yeah. 912 00:42:16,200 --> 00:42:17,190 Yeah, dude. 913 00:42:17,490 --> 00:42:21,090 Implementing an incentive program is, is definitely going to make you get 914 00:42:21,330 --> 00:42:25,380 crystal clear with your language and, and the outcome you're shooting for. 915 00:42:25,385 --> 00:42:25,525 Definitely. 916 00:42:25,530 --> 00:42:25,920 Speaker 2: Definitely. 917 00:42:25,920 --> 00:42:26,220 So, 918 00:42:26,520 --> 00:42:29,910 Sid: uh, if you've got a real salesperson, like a real one, 919 00:42:30,030 --> 00:42:30,300 Speaker 2: yeah. 920 00:42:30,720 --> 00:42:33,900 Sid: Uh, they may not. 921 00:42:34,635 --> 00:42:38,505 Ask for clarity on that, uh, on that incentive program and 922 00:42:38,505 --> 00:42:40,365 what the defined outcome is. 923 00:42:40,725 --> 00:42:44,205 But they're shooting for what they think it is, and if you guys are not 924 00:42:44,205 --> 00:42:46,305 aligned, you are going to get it, son. 925 00:42:47,025 --> 00:42:51,525 They are going to be real aggressive about how you lied to them, you know? 926 00:42:51,555 --> 00:42:51,795 Right. 927 00:42:52,275 --> 00:42:54,555 Speaker 2: And if you're a team member listening to this episode. 928 00:42:57,480 --> 00:43:01,290 Do not hesitate to ask for clarity. 929 00:43:01,290 --> 00:43:02,010 Yeah, yeah. 930 00:43:02,160 --> 00:43:02,670 Yeah. 931 00:43:02,730 --> 00:43:07,620 Because one of the things that I would, I, I would do as a, as a leader is say, 932 00:43:07,650 --> 00:43:14,430 oh, if we, if I'm gonna do this, when we hit this, well, I had a team member 933 00:43:14,430 --> 00:43:16,920 one time say, what, what does that mean? 934 00:43:17,760 --> 00:43:18,750 And it helped me. 935 00:43:18,780 --> 00:43:21,600 It helped me clarify what I was promising. 936 00:43:21,630 --> 00:43:21,690 Sid: Yeah. 937 00:43:23,340 --> 00:43:28,740 Um, I'll also say if you're a team member, you're a business leader of a 938 00:43:28,740 --> 00:43:34,680 department or just anything and you got someone trying to implement an incentive 939 00:43:34,680 --> 00:43:38,640 program and it's messy and it's not going okay, let's have a little bit of grace. 940 00:43:39,000 --> 00:43:42,690 'cause they're at least trying to do something they. 941 00:43:43,140 --> 00:43:47,820 These things are tough, and everything sounds like a good idea, even on 942 00:43:47,820 --> 00:43:51,840 paper until it starts to get executed and you didn't think about what, you 943 00:43:51,840 --> 00:43:57,150 didn't think about all of my best ideas or all of my biggest mistakes. 944 00:43:57,150 --> 00:43:57,690 I'm sorry. 945 00:43:58,080 --> 00:44:01,410 All of my biggest mistakes started out as fantastic ideas. 946 00:44:01,530 --> 00:44:02,550 I never had a bad idea. 947 00:44:02,550 --> 00:44:04,935 I. They just turned out to be wrong. 948 00:44:05,115 --> 00:44:05,685 You know? 949 00:44:06,525 --> 00:44:09,885 So have a little bit of grace because at least people are trying and I'm 950 00:44:09,885 --> 00:44:15,555 saying that to you, the listener, to uh, yeah, give yourself a little bit of 951 00:44:15,555 --> 00:44:21,195 grace and maybe be a little bit, I. More brave and at least trying something. 952 00:44:21,225 --> 00:44:24,435 And if you set your people up to say, Hey, I don't know that I've got this 953 00:44:24,435 --> 00:44:29,655 fully, uh, a hundred percent dialed in, but I would like to try something. 954 00:44:29,715 --> 00:44:32,655 'cause I wanna make sure that we're rowing in the right direction and I wanna make 955 00:44:32,655 --> 00:44:36,645 sure that I'm putting my money where my mouth is, that uh, this is the difference 956 00:44:36,645 --> 00:44:37,905 that's gonna make the difference. 957 00:44:38,475 --> 00:44:41,055 And if we do these things, here's what I think I can do. 958 00:44:41,415 --> 00:44:43,545 Let's try this for a little while and see if it works. 959 00:44:43,735 --> 00:44:46,800 That's a real good approach to starting an incentive program. 960 00:44:46,860 --> 00:44:47,010 Speaker 2: Yeah. 961 00:44:47,010 --> 00:44:49,380 I think you have to look at the sustainability of it. 962 00:44:49,500 --> 00:44:49,680 Yeah. 963 00:44:49,710 --> 00:44:50,730 Can you sustain it? 964 00:44:51,240 --> 00:44:54,030 Can this be sustained and a try? 965 00:44:54,030 --> 00:44:57,480 I I don't think there's anything in the world wrong with a try. 966 00:44:57,480 --> 00:44:57,540 Yeah. 967 00:44:57,630 --> 00:44:57,900 Hey. 968 00:44:58,380 --> 00:45:00,030 And, but be very clear about it. 969 00:45:00,030 --> 00:45:02,010 Say, let's try this. 970 00:45:02,070 --> 00:45:04,680 Sid: Well help you when you hire people, you put 'em on 971 00:45:04,680 --> 00:45:06,420 a 90 day probationary period. 972 00:45:06,630 --> 00:45:06,870 Right. 973 00:45:06,870 --> 00:45:08,070 I mean, at least we do. 974 00:45:08,400 --> 00:45:09,960 I, I think that's still a standard practice. 975 00:45:09,965 --> 00:45:10,115 It is. 976 00:45:10,155 --> 00:45:11,795 I haven't worked anywhere in a long, in long time. 977 00:45:11,795 --> 00:45:12,240 I think it's, yeah. 978 00:45:12,480 --> 00:45:13,230 Uh. 979 00:45:14,340 --> 00:45:17,130 So even then we're just going, Hey, we're just giving this a shot. 980 00:45:17,430 --> 00:45:19,230 You know, if it doesn't work out, doesn't make you a bad 981 00:45:19,230 --> 00:45:20,670 person, just makes you a bad fit. 982 00:45:21,450 --> 00:45:26,280 Um, and so trying that out is good, but I, I think we're segueing into 983 00:45:26,340 --> 00:45:33,300 how, how to implement a system, um, in, in my, in, in broad, in a 984 00:45:33,300 --> 00:45:37,800 broad scope, it needs to be win-win. 985 00:45:39,015 --> 00:45:44,265 It, it can't be all one sided for the business owner or management, and it can't 986 00:45:44,265 --> 00:45:47,625 be all one sided, uh, to the team member. 987 00:45:48,075 --> 00:45:53,865 Um, so it needs to be balanced in that way. 988 00:45:53,955 --> 00:45:57,794 It needs to be balanced in a way that it can't be manipulated either. 989 00:45:57,884 --> 00:45:59,805 Let's do this, let's say that, um. 990 00:46:03,089 --> 00:46:06,089 Let's say, let's say you've got sale a salesperson, right? 991 00:46:06,689 --> 00:46:13,470 And you say, look, I'm going to give you, uh, 10% of every sale you make. 992 00:46:14,250 --> 00:46:15,750 Well, let me tell you what you're gonna have. 993 00:46:15,779 --> 00:46:18,750 If you've got a real, if you've got a real assassin out there. 994 00:46:18,945 --> 00:46:23,835 A real sales badger, they're gonna sell everything and they won't 995 00:46:23,835 --> 00:46:25,785 give a crap if it's good work. 996 00:46:25,785 --> 00:46:29,805 Bad work in your area, not in your area, nothing. 997 00:46:30,375 --> 00:46:33,375 Not because they're bad people, but they're just wired that way. 998 00:46:33,375 --> 00:46:35,655 They see a goal, they're just going after it. 999 00:46:36,315 --> 00:46:40,605 So they'll sell $2 million worth of shit you don't need, you know, 1000 00:46:40,845 --> 00:46:44,265 and you are on the hook to pay them whatever is that $20,000. 1001 00:46:44,880 --> 00:46:45,150 10. 1002 00:46:45,180 --> 00:46:46,050 Speaker 2: No, two. 1003 00:46:46,470 --> 00:46:46,890 2 million. 1004 00:46:46,890 --> 00:46:46,892 2 million. 1005 00:46:46,897 --> 00:46:47,076 That's two. 1006 00:46:47,081 --> 00:46:48,060 That's 200,000, 1007 00:46:48,060 --> 00:46:48,810 Sid: 200,000 bucks. 1008 00:46:49,050 --> 00:46:49,350 Yeah. 1009 00:46:49,350 --> 00:46:49,351 Yeah. 1010 00:46:50,940 --> 00:46:52,740 That's a tough, that's a tough mistake. 1011 00:46:53,010 --> 00:46:55,920 If it's a bunch of, no, I'd never do 10%, but you get what I'm saying? 1012 00:46:55,950 --> 00:46:56,070 Yeah. 1013 00:46:56,070 --> 00:46:57,300 Unless they're all commissioned. 1014 00:46:57,300 --> 00:46:58,410 But yeah, we like 1015 00:46:58,410 --> 00:46:59,760 Speaker 2: easy math on this podcast. 1016 00:46:59,790 --> 00:47:00,120 Yeah. 1017 00:47:00,330 --> 00:47:01,410 10 percent's a good one, 1018 00:47:01,770 --> 00:47:03,630 Sid: so, but either way. 1019 00:47:05,685 --> 00:47:09,165 So it needs to be balanced where it can't be manipulated. 1020 00:47:09,495 --> 00:47:11,985 So it's just clarifying your language. 1021 00:47:12,315 --> 00:47:19,125 We'll pay 10% on everything that's sold, that is in our service area, that 1022 00:47:19,154 --> 00:47:22,964 meets our, uh, meets our whatever it is. 1023 00:47:22,964 --> 00:47:26,955 So we used to do hours, but hours can get funky on that thing. 1024 00:47:27,435 --> 00:47:29,805 Uh, but just meet our gross profit margin. 1025 00:47:30,134 --> 00:47:31,365 So it's work that gets done now. 1026 00:47:31,865 --> 00:47:33,395 You're gonna get, oh, it's not my fault. 1027 00:47:33,395 --> 00:47:34,145 They didn't do that. 1028 00:47:34,145 --> 00:47:35,555 And I was like, well, it's not my fault either. 1029 00:47:36,424 --> 00:47:40,445 It's not my fault that either, you know, I didn't, I you, you 1030 00:47:40,445 --> 00:47:42,545 sold it was the job bid, right? 1031 00:47:42,575 --> 00:47:43,625 Oh, I promise it was bid. 1032 00:47:43,625 --> 00:47:43,835 Right. 1033 00:47:43,865 --> 00:47:44,134 Okay. 1034 00:47:44,134 --> 00:47:45,665 Well I didn't get, you know, that kind of stuff. 1035 00:47:45,665 --> 00:47:49,924 You're still gonna have to deal with that, but you can work through it, but at least 1036 00:47:49,924 --> 00:47:54,515 it's balanced and at least, and, and you gotta, this is just a piece of advice. 1037 00:47:54,845 --> 00:47:56,945 You need to pay the commission when you get paid. 1038 00:47:58,214 --> 00:47:59,595 And they go, well, I don't wanna wait for it. 1039 00:47:59,595 --> 00:48:00,674 Well, what do you want me to do? 1040 00:48:00,674 --> 00:48:01,815 You want me to come outta my pocket? 1041 00:48:03,165 --> 00:48:04,185 I'm happy to do that. 1042 00:48:04,185 --> 00:48:05,595 But I thought we were a team here. 1043 00:48:05,805 --> 00:48:10,065 And so sometimes you gotta punch back or push back, I'm sorry, with, uh, 1044 00:48:10,095 --> 00:48:12,674 with, with aggressive salespeople. 1045 00:48:12,795 --> 00:48:14,145 And aggressive salespeople. 1046 00:48:14,205 --> 00:48:15,435 Do not put them down. 1047 00:48:15,435 --> 00:48:16,935 They're just wired that way. 1048 00:48:16,935 --> 00:48:18,254 And you need some badgers. 1049 00:48:19,215 --> 00:48:20,415 Definitely at least one. 1050 00:48:20,445 --> 00:48:20,835 Speaker 2: Yes, 1051 00:48:21,045 --> 00:48:21,525 Sid: you, you need them. 1052 00:48:21,795 --> 00:48:26,325 You need them, and they're, and you can't like, get mad at 'em, uh, every once in 1053 00:48:26,325 --> 00:48:29,385 a while and then love 'em when they're bringing, when they're making it rain. 1054 00:48:29,415 --> 00:48:31,935 So you just gotta understand that's who they are. 1055 00:48:31,935 --> 00:48:32,805 And, and it's okay. 1056 00:48:33,135 --> 00:48:34,275 You need a hard charger. 1057 00:48:34,545 --> 00:48:37,095 You do need some hard chargers, and you may never have one of 1058 00:48:37,095 --> 00:48:38,295 those, and that's okay too. 1059 00:48:38,295 --> 00:48:41,415 But I'm just giving you some advice that you better clean up your 1060 00:48:41,415 --> 00:48:44,685 language and make sure it's balanced and make sure you've explained it. 1061 00:48:45,435 --> 00:48:50,294 Three times, and I like to say, Hey, will you explain back to me what 1062 00:48:50,294 --> 00:48:52,484 you understand this thing to be? 1063 00:48:52,845 --> 00:48:54,044 In your own words. 1064 00:48:55,335 --> 00:48:56,325 That's a good one. 1065 00:48:56,685 --> 00:49:00,044 Would you mind explaining to me in your own words what you 1066 00:49:00,044 --> 00:49:01,665 see this incentive plan being? 1067 00:49:02,055 --> 00:49:05,774 Because then you get to hear what's running through their sales badger 1068 00:49:05,774 --> 00:49:10,274 head, which might still be, you're gonna pay me 10% on anything? 1069 00:49:10,935 --> 00:49:11,835 No, no, no. 1070 00:49:12,015 --> 00:49:14,234 For the fourth time, it's this. 1071 00:49:14,625 --> 00:49:17,745 Speaker 2: Hey, let me tell you about a friend of the show called Content Fresh. 1072 00:49:18,285 --> 00:49:21,435 Since they've taken over our social media for the Overlap podcast, 1073 00:49:21,435 --> 00:49:22,725 we've seen incredible growth. 1074 00:49:23,325 --> 00:49:26,504 When you combine the growth from all social platforms, we're looking 1075 00:49:26,504 --> 00:49:29,805 at a massive increase of 2235%. 1076 00:49:30,525 --> 00:49:33,915 This partnership has truly transformed our reach and engagement. 1077 00:49:34,365 --> 00:49:37,694 If you're passionate about growing your business, partnering with Content 1078 00:49:37,694 --> 00:49:39,464 Fresh could be a game changer for you. 1079 00:49:40,125 --> 00:49:43,424 Go to overlap life.com and click on sponsors today. 1080 00:49:43,875 --> 00:49:46,964 Sid: I wanna take a moment to talk about someone who's been instrumental 1081 00:49:46,964 --> 00:49:48,734 in my personal and business success. 1082 00:49:48,795 --> 00:49:51,045 That's Johnny Barranco and his team at Barranco and 1083 00:49:51,045 --> 00:49:53,205 Associates for over seven years. 1084 00:49:53,205 --> 00:49:56,504 Johnny has been my go-to accountant and financial consultant. 1085 00:49:56,865 --> 00:49:59,205 I can tell you that he's more than just a tax preparer. 1086 00:49:59,444 --> 00:50:03,855 Johnny takes a holistic approach to all my financial dealings, aligning them with 1087 00:50:03,855 --> 00:50:06,645 my long-term plans and personal lifestyle. 1088 00:50:07,270 --> 00:50:10,630 I've recommended Johnny to several friends throughout different business groups 1089 00:50:10,630 --> 00:50:14,500 around the country, and the feedback has been nothing short of exceptional. 1090 00:50:14,680 --> 00:50:19,330 His expertise and service are top-notch, so if you're looking for someone who 1091 00:50:19,330 --> 00:50:22,810 not only prepares your taxes, but also helps you strategize for the 1092 00:50:22,810 --> 00:50:27,400 future, Johnny and his team at Barranco Associates are the ones to call. 1093 00:50:27,700 --> 00:50:29,170 Trust me, you won't regret it. 1094 00:50:29,350 --> 00:50:30,490 So contact. 1095 00:50:30,865 --> 00:50:35,035 Johnny Barranco today and take the first steps towards financial peace. 1096 00:50:35,095 --> 00:50:36,325 You're not gonna regret this. 1097 00:50:40,915 --> 00:50:44,245 Speaker 2: Incentive plans also work to highlight a certain area 1098 00:50:44,245 --> 00:50:45,504 of product that you wanna grow. 1099 00:50:45,520 --> 00:50:45,810 Sid: Yeah. 1100 00:50:46,555 --> 00:50:46,765 Speaker 2: Yeah. 1101 00:50:46,765 --> 00:50:49,794 So putting an incentive plan on just a specific product 1102 00:50:49,794 --> 00:50:51,084 that you sell is fine too. 1103 00:50:51,355 --> 00:50:51,714 Sid: Yeah. 1104 00:50:52,225 --> 00:50:56,395 I love an area that you're trying to grow, putting everyone on it. 1105 00:50:57,585 --> 00:51:01,875 Just paying a, you know, a fee to everyone for that on top of 1106 00:51:01,875 --> 00:51:03,585 whatever thing you've got going on. 1107 00:51:03,705 --> 00:51:04,095 Right. 1108 00:51:04,155 --> 00:51:11,235 When it's, so, even more than sales, let's say you've got a, um, a department 1109 00:51:11,235 --> 00:51:14,025 manager and tires are a big issue. 1110 00:51:14,025 --> 00:51:18,525 You look, you, you know, in your analysis from last year, you spent. 1111 00:51:19,440 --> 00:51:24,090 A hundred thousand dollars on, on tires, that would be a lot of money. 1112 00:51:24,090 --> 00:51:30,990 But if we can get that down to 50,000 by implementing some, you 1113 00:51:30,990 --> 00:51:36,030 know, we're gonna put in this, uh, this liquid tube inside of every. 1114 00:51:36,190 --> 00:51:40,360 Uh, every tire, it's gonna be, you know, $800. 1115 00:51:40,360 --> 00:51:44,230 You're gonna put it in twice a year, and then you're gonna have someone 1116 00:51:44,230 --> 00:51:48,130 go through with a metal detector through the yard once a once a week 1117 00:51:48,550 --> 00:51:53,440 to get up any screws or nails, and now you're only spending 40,000. 1118 00:51:53,440 --> 00:51:54,280 You know, you spent. 1119 00:51:54,915 --> 00:52:02,085 You know, $1,600 on the, the liquid tube, and then one guy a week for an 1120 00:52:02,085 --> 00:52:04,305 hour is gonna go through and do that. 1121 00:52:04,305 --> 00:52:09,705 There's another $1,600 and you spent $1,600 on a, uh, metal detector, and 1122 00:52:09,705 --> 00:52:13,905 you dropped your, uh, your tire expense from a hundred thousand to 40,000. 1123 00:52:14,025 --> 00:52:17,745 That's a lot of money that you just saved for, you know, whatever that is. 1124 00:52:17,745 --> 00:52:21,435 Is that $4,800? 1125 00:52:21,810 --> 00:52:22,350 That's a lot. 1126 00:52:22,380 --> 00:52:27,510 I'd, I'd, I'd save 60,000 by spending 48 all day long. 1127 00:52:27,870 --> 00:52:32,760 And then you go ahead and pay that other, um, you know that department 1128 00:52:32,760 --> 00:52:36,330 manager that put it all together and made sure it got done, you know, you'd 1129 00:52:36,330 --> 00:52:40,560 probably go ahead and pay that person $5,000 or $4,000 or whatever it is. 1130 00:52:42,385 --> 00:52:42,605 Now. 1131 00:52:42,610 --> 00:52:46,620 They're gonna want, if you may, if you save $60,000, they're gonna want 30,000. 1132 00:52:46,620 --> 00:52:48,060 And I think that's ridiculous too. 1133 00:52:49,890 --> 00:52:50,400 That's just me. 1134 00:52:52,544 --> 00:52:55,634 Cost savings is a great place to put an incentive plan. 1135 00:52:55,665 --> 00:52:55,725 Yeah. 1136 00:52:55,875 --> 00:52:57,674 You know why cost savings is a great place. 1137 00:52:58,814 --> 00:53:00,825 You want me, you want me, you want me to do the math for you on that? 1138 00:53:00,944 --> 00:53:02,174 It's almost better than sales. 1139 00:53:02,444 --> 00:53:03,375 It is better than sales. 1140 00:53:03,435 --> 00:53:03,495 Yeah. 1141 00:53:03,584 --> 00:53:06,734 It's, it's, it's twice as good in, in our world it's twice as good. 1142 00:53:07,125 --> 00:53:07,694 I'll explain it. 1143 00:53:07,694 --> 00:53:07,754 So 1144 00:53:10,549 --> 00:53:14,355 sales, you sell a thousand dollars, what do you have? 1145 00:53:14,955 --> 00:53:18,735 At a and, and if you're do, you've gotta, you've gotta, you've gotta, 1146 00:53:18,795 --> 00:53:20,145 uh, you gotta go to the job. 1147 00:53:20,145 --> 00:53:23,775 You gotta sell the job, you gotta do the job and all that stuff. 1148 00:53:23,775 --> 00:53:26,655 And we're operating at a 50% gross profit for easy math. 1149 00:53:26,835 --> 00:53:26,955 Yeah. 1150 00:53:26,955 --> 00:53:27,825 That's 500 bucks. 1151 00:53:27,825 --> 00:53:28,695 So you got 500 bucks. 1152 00:53:28,695 --> 00:53:31,515 So did you, so if you sold a a thousand dollars job, did 1153 00:53:31,515 --> 00:53:32,475 you have a thousand dollars? 1154 00:53:32,835 --> 00:53:33,015 Nope. 1155 00:53:33,345 --> 00:53:35,175 Now, if you save a thousand dollars, what do you have? 1156 00:53:35,235 --> 00:53:35,925 A thousand dollars. 1157 00:53:35,925 --> 00:53:36,735 A thousand dollars? 1158 00:53:36,795 --> 00:53:37,005 Yep. 1159 00:53:38,100 --> 00:53:38,835 A thousand dollars. 1160 00:53:39,735 --> 00:53:40,785 It's doubling your money. 1161 00:53:41,475 --> 00:53:45,885 Every dollar you spend, every dollar you save is like, is like $2 of sales. 1162 00:53:47,145 --> 00:53:52,155 Now, every dollar you save in a department that is operating at 70% gross 1163 00:53:52,155 --> 00:53:56,295 profit is way more than uh, a dollar. 1164 00:53:56,655 --> 00:53:57,915 It's like $3. 1165 00:53:58,160 --> 00:53:59,865 It's crazy. 1166 00:54:01,245 --> 00:54:05,505 Now you cannot save yourself into profitability, but you can save 1167 00:54:05,505 --> 00:54:07,785 yourself into another tax bracket. 1168 00:54:08,565 --> 00:54:10,009 Speaker 2: Definitely you can do that. 1169 00:54:10,230 --> 00:54:10,935 You can't, holy 1170 00:54:10,935 --> 00:54:12,134 Sid: shit, that is tweetable. 1171 00:54:12,315 --> 00:54:15,975 Uh, Tim, you can't save yourself into profitability. 1172 00:54:16,125 --> 00:54:18,884 But if you're profitable and you start saving some money, you can save 1173 00:54:18,884 --> 00:54:20,505 yourself into another tax bracket. 1174 00:54:21,195 --> 00:54:25,035 That's how you make some real money is. 1175 00:54:26,205 --> 00:54:31,694 Looking at your p and l and saving $200,000 in expenses, variable overhead or 1176 00:54:31,694 --> 00:54:33,674 fixed overhead, or a combination of both. 1177 00:54:34,214 --> 00:54:39,194 'cause then you don't have to sell $450,000 worth of work. 1178 00:54:40,185 --> 00:54:42,705 You just do the same amount of work with the same amount of 1179 00:54:42,705 --> 00:54:44,895 hours, with the same uh, people. 1180 00:54:45,105 --> 00:54:46,725 You're just saving the expenses. 1181 00:54:49,035 --> 00:54:49,575 There we go. 1182 00:54:50,895 --> 00:54:56,985 So there's, there's our rant on incentive programs and, and as somo as that is, 1183 00:54:56,985 --> 00:55:00,555 you know, we didn't, I mean, Keith did bring in the Harvard Business Review. 1184 00:55:00,915 --> 00:55:03,555 I mean, this is just our experience with it. 1185 00:55:03,975 --> 00:55:08,690 Um, this is, this is like rubber meets the road, real nuts and bolts 1186 00:55:08,835 --> 00:55:10,755 experience with incentive programs. 1187 00:55:11,235 --> 00:55:13,425 Um, and so. 1188 00:55:14,570 --> 00:55:17,895 Uh, you know, I, I feel like it's, I feel like it's pretty good advice. 1189 00:55:17,895 --> 00:55:20,595 I, I, and, and I give this kind of advice all the time. 1190 00:55:20,895 --> 00:55:21,135 Uh. 1191 00:55:21,690 --> 00:55:25,200 Keith mentioned the guys in my peer group and, and we've, we've had 1192 00:55:25,290 --> 00:55:27,000 tons of discussions about this. 1193 00:55:27,600 --> 00:55:28,740 Why do you wanna do it? 1194 00:55:28,800 --> 00:55:32,070 You're, you're trying to get everyone rowing in the same direction and in 1195 00:55:32,190 --> 00:55:36,450 me, as the leader, I've gotta identify what are the areas that are gonna 1196 00:55:36,450 --> 00:55:40,140 make the biggest differences, and how do I keep people focused on that? 1197 00:55:40,500 --> 00:55:44,250 Then also, how do I line them up with what's in it for them, the 1198 00:55:44,250 --> 00:55:46,140 company and all of our futures? 1199 00:55:47,370 --> 00:55:48,540 When do I do that? 1200 00:55:49,035 --> 00:55:53,085 I do it when I've got some pretty good systems in place. 1201 00:55:53,085 --> 00:55:57,194 I know what success looks like and I probably have some help in implementing 1202 00:55:57,225 --> 00:56:02,475 and managing that process so I don't mess it up because if you start something, you 1203 00:56:02,475 --> 00:56:06,944 damn well better be able to be consistent with it or you're gonna lose all of 1204 00:56:06,944 --> 00:56:11,055 that, uh, leadership capital you, you built up over the last couple of years. 1205 00:56:11,535 --> 00:56:13,035 And then how do you set it up? 1206 00:56:13,605 --> 00:56:16,785 Um, it just needs to be win-win, so the company wins. 1207 00:56:17,190 --> 00:56:20,220 First, and then the team member wins. 1208 00:56:20,279 --> 00:56:22,710 And it's gotta be balanced where it can't be manipulated. 1209 00:56:23,250 --> 00:56:26,790 Um, and if you, you follow those three steps, I think 1210 00:56:26,790 --> 00:56:27,870 you're gonna be in good shape. 1211 00:56:30,630 --> 00:56:34,080 Keith, any final thoughts, questions, comments, concerns? 1212 00:56:34,950 --> 00:56:36,840 Speaker 2: The Harvard Business Review also said 1213 00:56:40,770 --> 00:56:45,509 Sid: he's been hanging out with scientists and, and, uh, all these people. 1214 00:56:46,290 --> 00:56:46,860 The 1215 00:56:46,920 --> 00:56:53,940 Speaker 2: number one downfall of any incentive plan is the follow through. 1216 00:56:54,355 --> 00:56:54,775 Sid: Mm-hmm. 1217 00:56:55,475 --> 00:56:55,895 Mm-hmm. 1218 00:56:56,100 --> 00:56:59,730 Speaker 2: So be sure that you can follow through. 1219 00:57:00,030 --> 00:57:01,470 It's so important with what you come up with. 1220 00:57:01,830 --> 00:57:03,180 Sid: It's so important to you. 1221 00:57:03,180 --> 00:57:05,040 Entrepreneurs talking, I'm talking to 1222 00:57:05,040 --> 00:57:05,730 Speaker 2: myself too. 1223 00:57:05,820 --> 00:57:07,650 Well, yeah, that's the, that's the number. 1224 00:57:07,830 --> 00:57:10,560 I think that's a, a big problem just in. 1225 00:57:11,460 --> 00:57:13,170 In new business anyway. 1226 00:57:13,200 --> 00:57:13,980 Yeah, just follow through. 1227 00:57:14,490 --> 00:57:16,380 Sid: Well, we start something 'cause we had an idea. 1228 00:57:16,529 --> 00:57:16,799 Speaker 2: Yeah. 1229 00:57:17,040 --> 00:57:20,850 Sid: And we got like struck with the, the bug and let's just go do it. 1230 00:57:21,420 --> 00:57:21,720 Speaker 2: Yep. 1231 00:57:21,779 --> 00:57:23,040 Sid: Same thing with incentive program. 1232 00:57:23,040 --> 00:57:23,100 Yeah. 1233 00:57:23,339 --> 00:57:24,480 It sounds like the right idea. 1234 00:57:24,480 --> 00:57:26,880 I see all the upsides, all the benefits. 1235 00:57:26,984 --> 00:57:30,720 I, I did not think about how I'm going to execute it and stay and, 1236 00:57:30,720 --> 00:57:33,000 and, and follow through with it. 1237 00:57:34,200 --> 00:57:36,960 That's why I'm always like, you gotta have someone. 1238 00:57:37,335 --> 00:57:40,245 Yeah, we're, we're implementing some, some new incentive plans. 1239 00:57:40,245 --> 00:57:41,505 And my first question is, cool. 1240 00:57:41,505 --> 00:57:42,285 Who's gonna do that? 1241 00:57:43,755 --> 00:57:47,235 Because everyone will come with you to an come with, come to you with an idea. 1242 00:57:47,955 --> 00:57:48,975 Man, I think we ought to do this. 1243 00:57:48,975 --> 00:57:49,665 Yeah, that's great. 1244 00:57:49,694 --> 00:57:50,475 Who's gonna do it? 1245 00:57:50,625 --> 00:57:51,404 Who's gonna manage it? 1246 00:57:52,065 --> 00:57:53,055 Oh, well I assumed you would. 1247 00:57:53,115 --> 00:57:54,944 Well, that's a terrible mistake. 1248 00:57:55,995 --> 00:57:56,714 Do you know me? 1249 00:57:57,225 --> 00:57:57,674 You know? 1250 00:57:58,035 --> 00:57:58,935 Yeah, yeah. 1251 00:57:59,055 --> 00:58:00,674 I'm, that's, no, I'm not doing that. 1252 00:58:01,484 --> 00:58:03,585 Let's, let's think, let's think a little bit deeper. 1253 00:58:03,615 --> 00:58:04,484 Who's gonna do that? 1254 00:58:04,484 --> 00:58:07,125 You know, who's really super organized on our team? 1255 00:58:07,154 --> 00:58:07,515 Okay. 1256 00:58:07,515 --> 00:58:08,595 Looks like it's gonna be Jamie. 1257 00:58:08,685 --> 00:58:09,105 Excellent. 1258 00:58:10,004 --> 00:58:11,595 Jamie, you got one more thing to do. 1259 00:58:12,435 --> 00:58:12,555 Speaker 2: Yeah. 1260 00:58:13,395 --> 00:58:14,745 I asked, I asked that w this week. 1261 00:58:14,745 --> 00:58:17,895 I had somebody come on my team and say, you should do. 1262 00:58:20,355 --> 00:58:21,105 I love it. 1263 00:58:21,674 --> 00:58:22,095 I love 1264 00:58:22,095 --> 00:58:23,325 Sid: the You should. 1265 00:58:23,475 --> 00:58:23,805 Yeah. 1266 00:58:23,805 --> 00:58:24,285 And I'm like. 1267 00:58:24,630 --> 00:58:28,890 Really, although you're pretty, you're pretty big on You should do this. 1268 00:58:28,920 --> 00:58:29,520 I like that. 1269 00:58:29,520 --> 00:58:29,880 Yeah. 1270 00:58:29,910 --> 00:58:30,270 Yeah. 1271 00:58:30,270 --> 00:58:31,110 I'm like, well, I've 1272 00:58:31,110 --> 00:58:32,850 Speaker 2: learned to turn it back. 1273 00:58:32,940 --> 00:58:33,510 Sid: Yeah. 1274 00:58:33,720 --> 00:58:34,080 Yeah. 1275 00:58:34,080 --> 00:58:35,490 Mm-hmm. 1276 00:58:36,540 --> 00:58:37,710 Speaker 2: So, oh, good times. 1277 00:58:38,130 --> 00:58:41,520 Let us know if you successfully, I hope we've not scared. 1278 00:58:41,790 --> 00:58:42,720 Scared you out. 1279 00:58:42,990 --> 00:58:43,560 No, you're doing great. 1280 00:58:43,560 --> 00:58:44,760 Implementing incentive. 1281 00:58:44,765 --> 00:58:45,265 They're great. 1282 00:58:45,270 --> 00:58:46,500 They're definitely good. 1283 00:58:46,890 --> 00:58:47,130 Yeah. 1284 00:58:47,130 --> 00:58:48,720 So let us know if you start one. 1285 00:58:49,140 --> 00:58:49,320 Yeah. 1286 00:58:49,320 --> 00:58:50,520 And let us know how it turns out. 1287 00:58:51,240 --> 00:58:53,460 Hey, you know who can help you with incentive plans? 1288 00:58:53,460 --> 00:58:53,880 Who's that? 1289 00:58:54,120 --> 00:58:55,470 Um, our sponsors. 1290 00:58:55,560 --> 00:58:56,940 Um, C two Wealth. 1291 00:58:57,180 --> 00:58:57,840 Oh, okay. 1292 00:58:58,020 --> 00:59:01,440 If you're at the stage where you need to add some real incentives 1293 00:59:01,440 --> 00:59:04,320 to your organization, they do that. 1294 00:59:05,190 --> 00:59:06,150 Like health benefits? 1295 00:59:06,330 --> 00:59:07,380 Health benefits, yeah. 1296 00:59:07,380 --> 00:59:09,960 Like some, you know, that is definitely an incentive. 1297 00:59:09,960 --> 00:59:10,170 Plan. 1298 00:59:10,200 --> 00:59:12,480 401k, that's definitely a set plan. 1299 00:59:12,480 --> 00:59:14,130 Your match, you gotta a term match. 1300 00:59:14,130 --> 00:59:14,550 A match, yeah. 1301 00:59:14,600 --> 00:59:19,279 Whatever they can help and you know who can help tell you if it's a good idea 1302 00:59:19,279 --> 00:59:23,779 for you to do it well, well, C two L can implement it, but then Johnny Barranco 1303 00:59:23,779 --> 00:59:24,950 can tell you if it's a good idea. 1304 00:59:24,950 --> 00:59:25,310 That's a good point. 1305 00:59:25,310 --> 00:59:26,089 And you're ready for it. 1306 00:59:26,360 --> 00:59:27,319 Sid: Yeah, that's a good point. 1307 00:59:27,620 --> 00:59:27,799 Yep. 1308 00:59:27,799 --> 00:59:28,580 He can definitely help. 1309 00:59:29,150 --> 00:59:29,870 Thanks everyone. 1310 00:59:30,110 --> 00:59:30,500 I'm out. 1311 00:59:30,740 --> 00:59:30,950 Yep. 1312 00:59:31,310 --> 00:59:31,520 Out. 1313 00:59:31,520 --> 00:59:31,610 Peace.